GXO Logistics considers possible sale: Market responds with price increase

GXO Logistics, a significant provider of supply chain services, which emerged in 2021 as a spin-off from XPO, is considering a possible sale, according to informed sources. Despite strong interest from potential buyers, the company has not yet made a final decision. Reportedly, GXO is working with financial advisors to explore its options. News of the sale considerations led to a notable pre-market surge in GXO shares by 8.3% on Thursday. If this trend continues, it would be the largest price increase since December 2022. The current market value of the company stands at approximately $6.1 billion, after having declined by about 22% since the spin-off. The logistics and transportation sector is known for its frequent mergers and acquisitions, due to its high fragmentation. XPO had built GXO through a series of acquisitions before the spin-off was executed to simplify the corporate structure. XPO itself divested its brokered transportation division in 2022. GXO describes itself in regulatory filings as the world's largest pure-play contract logistics provider, with 970 locations in 27 countries. The company offers services such as warehousing, distribution, and order fulfillment.