GXO Logistics shares slide on report it spurned a takeover offer

GXO Logistics (NYSE:GXO ) shares fell sharply on Tuesday evening after Bloomberg reported that the firm spurned a takeover offer, while CEO Malcolm Wilson said he will retire in 2025.

After exploring potential sale options in recent months, the supply-chain services provider, headquartered in Greenwich, Connecticut, has chosen to focus on its standalone strategy, the Bloomberg report said. The deliberations were initially reported by Bloomberg in October, which noted that GXO was working with financial advisers following interest from potential buyers.

Following the news, GXO’s stock fell sharply, plummeting as much as 12% in after-hours trading in New York. Shares were last down nearly 9%.

Separately, GXO announced that CEO Malcolm Wilson plans to retire in 2025. Wilson, who has led the company since its 2021 spin-off from XPO Inc (NYSE:XPO ), will remain in his role while the search for his successor is underway, according to a company statement.

The decision to forgo a sale marks a shift from GXO's history of dealmaking, the report stated. The company was built through a series of acquisitions under XPO before its spin-off as part of a broader effort to streamline operations. GXO’s notable deals include its 2022 acquisition of Clipper Logistics Plc for approximately $1.3 billion.

GXO serves major clients like Nike (NYSE:NKE ) and H&M (ST:HMb ), offering warehousing, distribution, and other supply-chain solutions.

Source: Investing.com