British competition regulator said on Wednesday U.S.-based warehousing firm GXO's purchase of England-based logistics company Wincanton is likely to reduce competition in the supply of dedicated warehousing services to UK grocery customers.

The U.K.’s antitrust regulator said the warehouse supplier’s purchase of its rival risks diminishing competition and raising costs for British grocers.

The CMA says the $965 million deal likely means a "substantial lessening of competition" in the supply of dedicated warehousing services to U.K. grocers.

UK's competition regulator said on Tuesday it has provisionally cleared British food maker Boparan Holdings' proposed deal to buy Dutch agricultural feed company ForFarmers' Burston and Radstock feed mill sites.