Home Depot has considered acquiring shipping company XPO Logistics, according to a report from Recode, in part to keep it away from Amazon.
XPO, which specializes in a variety of freight and logistics services, is known for its expertise in delivering heavy items like furniture. Amazon and XPO have been mentioned as potential partners in the past as the retail giant geared up for a big push into furniture sales.
XPO shares have surged close to 20 percent on the news of a potential acquisition by Home Depot. The stock bump has sent the company’s market cap north of $11 billion.
Recode was not able to verify interest from Amazon in an acquisition of XPO. Spokespeople from Amazon and Home Depot declined to comment, and XPO has not responded to a request for comment.
Amazon has invested billions in its logistics operation, often at a big loss, to open up more areas for rapid deliveries. The effort has largely paid off and forced competing retailers like Walmart, Target, Best Buy and others to up their shipping capabilities. A purchase of XPO would allow Home Depot to do the same.