XPO doesn’t expect to sell its European business in the “near term”
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Back in early March of this year, XPO Logistics announced its plan to divest its European logistics business. However, an official securities filing made on Friday December 2nd reveals that the company does not expect to realise this plan in the near term.
In March, when the XPO’s plans to sell its European business were made public, Brad Jacobs, chairman and chief executive officer of XPO Logistics, said:
“Our two core businesses of North American less-than-truckload and tech-enabled truck brokerage are industry-leading platforms in their own right, each with a distinct operating model and a high return on invested capital. We believe that by separating these businesses through a spin-off, we can significantly enhance value creation for our customers, employees and shareholders, as we did with our successful spin-off of GXO last year.”
A filing made by XPO logistics to the US Securities and Exchange Commission on Friday has nonetheless revealed that the plan will now take longer than originally planned. The reason for this, according to XPO, is “primarily to weakened capital markets in Europe”.
The first paragraph of that filing reads as follows:
“As previously announced on March 8, 2022, XPO (the “Company”) plans to divest its European business through either a sale or a listing on a European stock exchange. Due primarily to weakened capital markets in Europe, the Company does not currently expect to divest its European business in the near term. The Company does not undertake to provide any further updates on the status of the plan, except as may be required by applicable law.”