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DP World expands UK logistics network with GXO grocery warehouse takeover

IFM_DP World
The deal covers five facilities in England and one in Northern Ireland that serve some of the largest British supermarket chains

Dubai-based ports and logistics giant DP World is strengthening its supply chain network in the United Kingdom after agreeing to acquire six grocery logistics sites from United States-based GXO Logistics, adding more than two million square feet of warehouse space and over 2,000 employees to its British operations.

The deal, expected to complete in September 2026, covers five facilities in England and one in Northern Ireland that serve some of the UK’s largest supermarket chains, including Asda, Sainsbury’s and the Co-op. Financial terms of the transaction were not disclosed.

The warehouses provide ambient, chilled, frozen and bonded storage, handling around 46,000 different grocery products destined for supermarkets, convenience stores and neighbourhood retailers across the UK. GXO will continue to operate transport services linked to the sites where applicable.

The acquisition forms part of DP World’s strategy to build an integrated, end-to-end logistics platform spanning ports, freight forwarding, warehousing, distribution and inland transport across the United Kingdom and Europe.

Angela Howard, Vice President of Contract Logistics, North Europe at DP World, said the transaction would strengthen the company’s presence in key retail and consumer markets while expanding its geographic reach.

“We are delighted to welcome these six sites and the talented teams who operate them into DP World. They support some of the UK’s best-known grocery retailers and play a vital role in keeping products moving efficiently through complex supply chains every day,” she said.

“For our customers, it will be business as usual, backed by the strength, scale and investment of a global logistics business. By adding these operations to our network, we are expanding our ability to provide seamless supply chain solutions that connect ports, transport, warehousing and distribution through a single, integrated platform. This is an important step in our ambition to build a truly end-to-end logistics offering across the UK and Europe. It strengthens our presence in key retail and consumer markets, broadens our geographic reach and further enhances our ability to create value for customers,” the senior official remarked further.

The transfer is a result of regulatory requirements set by the UK’s Competition and Markets Authority (CMA) during its examination of GXO’s acquisition of the logistics firm Wincanton. The regulator concluded that combining the two businesses could reduce competition in outsourced grocery warehousing and required the divestment of Wincanton’s grocery logistics operations as a condition for approving the takeover.

For DP World, the acquisition further broadens its UK footprint beyond its flagship container terminals at London Gateway and Southampton. The company has been investing heavily in expanding its logistics capabilities as it seeks to capture a larger share of customers’ supply chains rather than relying solely on port operations.

The agreement is the second perishable logistics investment announced by DP World in the first weke of August. The company has also committed to developing a new temperature-controlled logistics centre at the Port of Antwerp in Belgium, a project expected to attract long-term investment of around 100 million euro.

DP World is also developing an automated grocery distribution centre for Tesco at London Gateway, due to open in 2029, reinforcing its ambition to become a leading integrated logistics provider serving retailers across the UK and Europe.

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