As Reuters wrote, discussions surrounding the potential sale remain confidential, and a final decision has yet to be made. The source, who requested anonymity told the news agency that the discussions might not lead to a deal.
On the news of potential acquisition talks, GXO’s shares rose by over 8% in after-hours trading on last Wednesday.
Despite recent gains, GXO Logistics has faced challenges since its IPO, losing more than 20% of its market value. The company’s shares are down 17% this year due to weaker customer demand in the UK and Europe, underperforming the S&P 500 Air Freight & Logistics Index.
Nevertheless, GXO has shown improvement in recent quarters. The company signed new contracts that boosted its revenue by 19%, bringing it to $2.85 billion in its latest earnings report. Analysts at Jefferies have credited GXO’s expertise in AI and robotics for driving its growth, with the company’s sales pipeline reaching $2.3 billion in August.
In addition to these developments, GXO also expanded its footprint in the UK by acquiring British transport company Wincanton PLC earlier this year. The deal, valued at approximately £753.5 million, received government approval after a review under the National Security and Investment Act 2021. The acquisition was finalised after Wincanton’s shareholders overwhelmingly supported the offer.
According to Reuters, GXO is valued at approximately $6 billion.