Genuine Parts NYSE:GPC has received a cash bid from O'Reilly Automotive NASDAQ:ORLY for its automotive parts business as the U.S. retailer explores options to sharpen its focus on its industrial operations, Bloomberg News reported on Thursday, citing people familiar with the matter.
The automotive unit could be valued at $10 billion or more, according to the report.
A deal could be announced by the end of the summer, Bloomberg reported, while cautioning that Genuine Parts could still opt to retain the business or pursue a spinoff instead. Another bidder could also emerge.
Shares of Genuine Parts rose 12.8% and O'Reilly's stock dropped 4.2% in afternoon trade.
Genuine Parts and O'Reilly did not immediately respond to Reuters requests for comment.