Shares in London-listed Clipper, which fulfils orders and handles returns for companies such as online clothing retailer ASOS and Swedish clothing firm H&M, were up almost 14% at 885 pence by 1039 GMT, after the two companies said separately they had agreed terms of a possible deal.
The pandemic has spurred a boom in online shopping over the last two years, creating more demand for e-fulfilment and warehousing space as companies struggle with supply chain issues and logistical challenges.
GXO, which counts Apple, Nike and Nestle among its clients, has proposed buying Clipper in a cash and stock deal implying a total value of 920 pence per Clipper share, or a premium of 18% to Friday's closing price.
The companies said in separate statements that Clipper shareholders would be able to choose the proportion in which they receive new GXO shares and cash.
The deal would help Greenwich, Connecticut-based GXO expand its customer base in the e-commerce space, and make a foray into Germany and Poland.
Clipper owns 11.8 million square feet of warehousing space and operates a fleet of more than 350 vehicles across 55 sites in Europe. GXO, which was spun off from XPO Logistics in August last year, owns warehouses in 869 locations spanning 27 countries in North America and Europe.
Clipper had also drawn takeover interest in November 2019, when investment firm Sun Capital approached the British firm but walked away soon after.
Blackstone last week said it was leading a 21 billion euro ($23.87 billion) recapitalisation of Mileway, the biggest operator of urban warehouses in Europe.
($1 = 0.8799 euros)
(Reporting by Sinchita Mitra and Yadarisa Shabong in Bengaluru; editing by Uttaresh.V, Kirsten Donovan)
By Sinchita Mitra and Yadarisa Shabong
