Wednesday, December 27, 2017

Major Global Freight and Logistics Firm Eyed by On Line Retail Outfit

Big Acquisition Specialist Itself May Be a Target
Shipping News Feature

US – WORLDWIDE – Rumours of the possible takeover of freight and warehousing group XPO Logistics by the Home Depot organisation continue after the e-commerce transport specialist, which has itself bought up 17 companies in the past 5 years, including expanding from a principally US group this year with the purchase of the iconic Norbert Dentressangle marque, into a major force in the European market. Other deals included the $3 billion purchase of road haulage firm Con-Way and its freight forwarding subsidiary Menlo.

A deal for the XPO takeover would cost Home Depot treble that figure but would keep the vast experience and infrastructure of XPO out of the hands of bitter rival Amazon which has been bobbing and weaving testing different delivery strategies. Whilst the internet retail giant has ventured into deliveries emanating from its third party suppliers with Seller Flex, introduced a couple of months ago, and making noises about opening its own delivery subsidiary, XPO boss Bradley Jacobs has also been launching an offensive.

Seller Flex caused his biggest rivals, FedEX and UPS, stock to fall in value and he has opined that the work which these two shun, larger ‘big ticket’ items, can be meat and drink to his asset light company with ever larger big screen TV’s and similar falling outside the capabilities of the usual express parcels carriers.

The latest speculation caused a 14.4% jump in the value of XPO Shares with no movement for Home Depot stock. The retailer has seen Amazon make inroads in its conventional customer base and really needs to do something to maintain its position in the game. It may be that its advisers believe buying up one of the top ten logistics outfits on the planet could well improve its chances of doing that.

Photo: Bradley S Jacobs. Since taking control in 2011 he has received both good, and bad, publicity for his aggressive management policies.