XPO Logistics Inc will purchase Pacer International Inc to bolster its intermodal shipping business as it looks to provide cheaper services and take advantage of the booming trade between the United States and Mexico.XPO's shares rose as much as 10 percent after the company said its eleventh deal in two years would make it the third-largest North American provider of intermodal services, which move goods using multiple modes of transport.U.S. transportation companies have invested heavily to build up their intermodal business, which cuts fuel costs by 15-20 percent by moving goods in standardized containers using trucks, trains and ships.These companies have also focused on expanding their services to Mexico, where the booming manufacturing sector has made imports cheaper compared with China and other countries, a trend XPO Chief Executive Brad Jacobs expects will continue.
Pacer International Inc. (Pacer) is a asset-light transportation and global logistics service provider. Shares of PACR traded higher by 7.8% or $0.65/share to $8.98. In the past year, the shares have traded as low as $3.75 and as high as $9.23. On average, 285943 shares of PACR exchange hands on a given day and today's volume is recorded at 2557719.
XPO Logistics, Inc. is a logistics provider of freight transportation services. Shares of XPO traded higher by 6.96% or $1.95/share to $29.98. In the past year, the shares have traded as low as $15.48 and as high as $28.35. On average, 416832 shares of XPO exchange hands on a given day and today's volume is recorded at 909847.
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