Genuine Parts receives bid from O'Reilly for auto unit, Bloomberg News reports (updated)

O'Reilly Automotive

02/07/2026 21:21

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    July 2 (Reuters) - Genuine Parts GPC.N has received a cash bid from O'Reilly Automotive ORLY.O for its automotive parts business as the U.S. retailer looks to sharpen 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 closed 12.9% higher and O'Reilly's stock closed down 2.6%.
Genuine Parts declined to comment and O'Reilly did not immediately respond to a Reuters request for comment.
The automotive industry has been grappling with rising costs, tariffs and an uneven transition to electric vehicles, prompting companies across the sector to reassess their strategies.
The industry is also reeling from First Brands' Chapter 11 bankruptcy protection last year. The company supplied filters, brakes and lighting systems.
Genuine Parts in February said it would separate its automotive and industrial businesses into two standalone companies, arguing the businesses could be worth more independently.
The move came after pressure from activist investor Elliott Investment Management, which had said the company's share price understated the value of the two operations.
Companies across industries have been recently turning to breakups to unlock shareholder value and sharpen strategic focus; Honeywell HON.O completed its separation into three standalone companies in June after pressure from Elliott, and 3M MMM.N spun off its healthcare business, Solventum SOLV.K, in 2024.
Genuine Parts, an Atlanta-based distributor founded in 1928, operates the NAPA Auto Parts network and the Motion industrial parts business. The company's automotive segment generated more than $15 billion in revenue in 2025, while its industrial unit contributed about $9 billion.

 (Reporting by Arunima Kumar and Apratim Sarkar in Bengaluru; Editing by Sahal Muhammed)
 ((Arunima.Kumar@thomsonreuters.com;))