XPO's big reshuffle
The board of directors of XPO Logistics unanimously approved its plans for a radical restructuring. The strategy includes a spin-off of 100% of its logistics segment as a separate publicly traded company.
The group intends to structure the spin-off as a transaction that is tax-free to XPO shareholders and would result in XPO shareholders owning stock in both companies.
The aim of the move was defined the following way: "The spin-off will result in separate businesses with clearly delineated service offerings: XPO Remain Co, a global provider of less-than-truckload (LTL) and truck brokerage transportation services; and New Co, the second largest contract logistics provider in the world." In the end, both companies are expected to trade on the New York Stock Exchange. (sh)