DP World to take over grocery storage assets in the UK

DP World, a Dubai-based ports operator, has reached an agreement to acquire the UK grocery distribution assets of US firm GXO Logistics, expanding its European investments. The deal includes six contract logistics sites across England and Northern Ireland, covering over 185,000 square meters of space. These facilities cater to UK retailers like Asda, Sainsbury’s, and the Co-op, as well as out-of-town supermarkets, branded convenience stores, and neighborhood outlets.

The warehouses will store approximately 46,000 unique products, including ambient, chilled, frozen, and bonded grocery items. DP World did not disclose the deal's monetary value. Upon completion by September (pending British regulatory approval), the acquisition will integrate 2,000 GXO employees into DP World's UK operations, which include logistics, freight forwarding, marine services, and container ports at London Gateway and Southampton.

GXO will maintain transport operations at these sites. Angela Howard, DP World's vice president of North Europe contract logistics, emphasized that the acquisition is a crucial step in their goal to offer a comprehensive logistics solution across the UK and Europe, enhancing their presence in key retail markets and broadening their geographic reach.

This is DP World's second UK perishables-related deal this week, following an agreement to construct a temperature-controlled logistics center in the Port of Antwerp, valued at €100 million. Howard highlighted that these operations will enable DP World to provide seamless supply chain solutions, connecting ports, transport, warehousing, and distribution through a single integrated platform.