GXO Logistics Share Decline

GXO Logistics (NYSE:GXO) shares fell sharply on Tuesday evening after Bloomberg reported that the firm rejected a takeover offer, while CEO Malcolm Wilson announced plans to retire in 2025.

After exploring sale options in recent months, the Greenwich, Connecticut-based supply-chain services provider has chosen to focus on a standalone strategy, as per Bloomberg. Initial reports suggested GXO was working with financial advisers due to interest from potential buyers.

Following the news, GXO’s stock dropped significantly, plummeting as much as 12% in after-hours trading in New York, ultimately down nearly 9%.

In a separate announcement, GXO revealed that CEO Malcolm Wilson, who has led the company since its split from XPO Inc (NYSE:XPO) in 2021, plans to retire in 2025. Wilson will remain in his role while the company searches for his successor.

The decision to forgo a sale represents a shift in GXO's approach, as the company was formed through various acquisitions under XPO before its spin-off. Notably, one of its significant deals includes the 2022 acquisition of Clipper Logistics Plc for about $1.3 billion.

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