Why GXO Logistics stock popped today

Actions of GXO Logistics (GXO 14.15%) rose today after Bloomberg reported last night that the world’s largest pure-play contract logistics company was the subject of takeover bids. The news represents a surprising turnaround for GXO, as the company is known as an acquirer, having made several acquisitions since it was spun off from XPO in 2021.

The stock was up 14.4% on the news as of 12:36 a.m. ET.

Image source: GXO Logistics.

GXO is in the game

According to Bloomberg, the company is exploring a sale and is currently working with financial advisors. This decision comes after receiving interest from several buyers.

An anonymous source said GXO has received several high-quality inbound offers and no decision has been made to sell the company. GXO could also decide not to sell itself and remain independent.

The move represents a strategic reversal for the company. It became a standalone company in 2021 under the logic that it would be better able to pursue acquisitions as its own company, and it has done so, buying Clipper Logistics, PFSWeb and Wincanton since it was spun off from XPO.

Will GXO be sold?

With GXO’s market cap at $7 billion, any buyer of the company would likely be a large global shipper such as DHL or FedEx. GXO owns and operates approximately 1,000 warehouses in North America and Europe, many of which are highly automated.

It serves a wide range of customers, from manufacturers to companies in the consumer electronics, food and beverage and healthcare sectors.

Based on the stock’s performance today, investors seem to like the idea of ​​a selloff. It is not clear which would come first, but the presence of multiple interested parties presents the possibility of a bidding war, which would favor investors.