By Yadarisa Shabong

Nov 1 (Reuters) - Britain's competition watchdog said on

Friday the acquisition of Wincanton by U.S.-based warehousing

firm GXO Logistics ( GXO ), for 762 million pounds ($983.97

million), could reduce competition and raise prices for

customers.

The Competition and Markets Authority said GXO and Wincanton

compete closely, particularly for contracts with large retail

customers, and the regulator was concerned the merger could

reduce competition, resulting in higher costs being passed down

to consumers.

The deal was completed in April - the CMA had launched its

investigation in early September.

"We are reviewing the decision and will continue to engage

constructively and collaboratively with the CMA to secure a

positive outcome," GXO told Reuters.

Earlier this year, GXO outbid CEVA Logistics with a 605

pence per share offer for Wincanton, a company that operates in

about 160 locations in the UK and Ireland and is involved in

e-commerce, groceries and non-food retail.

Customers of Wincanton include major supermarket operators

such as Sainsbury's, Morrisons and Asda.

GXO has five working days to submit proposals to address

CMA's concerns.​

($1 = 0.7744 pounds)