Home Depot is contemplating acquiring the logistic and trucking firm XPO Logistics. XPO logistics is the provider of logistic and freight services to various large retailers.
Amazon and Home Depot are both in contention for the acquisition, and both are clients of XPO. Sources have indicated that the main reason behind Home Depot going for the acquisition is to keep the public company out of reach of Amazon, since Amazon has also shown keen interest in going for the buy-out.
Logistic companies who provide last mile logistics have lately gained importance because of the growing demands of e-commerce. However, XPO has had a focus in serving the demands of heavy items like furniture. There is a growing pattern of shoppers buying furniture online, and XPO serves all these retailers. Sources could not confirm Amazon’s interest in XPO, or if there has been a discussion between XPO and Home Depot or Amazon.
Earlier this year, the Wall Street Journal had shared an insight that XPO was one of the main companies Amazon had planned to work with, as it was creating a big thrust in the sale of furniture.
Furthermore, over the past few years, the e-commerce giant has had a major control over the logistics of this company – purchasing stakes in cargo airlines, handling large volumes of delivery and leasing out thousands of truck trailers of its own.
Back in 2015, XPO itself acquired another trucking company, Con-way, for a net worth of $3 billion, leveraging the large fleet of trucks. Additional, Home Depot was given the honor of “Mid-Size Truckload Carrier of the Year,” according to a press release of XPO.