Mexico trade drives XPO Logistics to buy Pacer

U.S. company XPO Logistics said it would buy Pacer International for $335 million, bolstering its intermodal shipping business to take advantage of the booming trade between the United States and Mexico.

U.S. rail and trucking companies have focused on expanding their services to Mexico, where the booming manufacturing sector has helped make imports cheaper compared with China and other countries.

The acquisition of Pacer, the largest provider of intermodal services between the U.S. and Mexico, would make XPO the third-largest North American provider of such services, the two firms said in a statement.

Source: Reuters