XPO: Its European Business Sale Back on the Table After 2 Year Pause
XPO explores selling its European unit again, potentially worth $2B. The move comes nearly two years after scrapping the initial plan due to market conditions.
John Major DavisAugust 16, 20243 Mins read639
XPO Looks to Sell Its European Business Again
XPO Inc., a big name in logistics, is once again looking to sell its European transportation business. This comes nearly two years after the company decided not to sell the unit due to poor market conditions in Europe. Sources say the business could be worth as much as $2 billion.
Renewed Sale Effort
XPO is trying to sell its European unit as part of its plan to focus more on its core operations. The company is working with advisers to find potential buyers. However, they might decide to keep the business if the market isn’t right.
Market Impact
After news of the potential sale broke, XPO’s stock price jumped 7.7%, reaching a high not seen in four months. Over the past year, the company’s stock has risen by over 70%.
Strategic Background of XPO Europe Sale
In 2022, the company planned to split its freight brokerage and North American trucking operations into two different companies. The European business was supposed to be sold or listed on a European stock exchange. But nine months later, they decided not to sell, citing poor market conditions.
This latest effort to sell the European unit is part of XPO’s ongoing strategy that started in 2020. Since then, they sold or spun off other parts of its business to focus on its core operations.
Future Prospects
Even though a sale is not certain, the European unit is still a key part of XPO’s business, making up 40% of its revenue in 2023. The decision to revisit the sale shows its focus on increasing shareholder value and sticking to its core business.
