O'Reilly Automotive submitted a cash bid of more than $10 billion for Genuine Parts Co.'s automotive division — the NAPA Auto Parts network — with the offer becoming public Tuesday. [1]

Genuine Parts shares rose approximately 13 percent on the news; O'Reilly shares fell 6.7 percent, the market's standard translation of acquisition-price risk. [2] A deal at $10 billion would make it O'Reilly's largest acquisition since it bought CSK Auto for roughly $1 billion in 2008.

Genuine Parts announced in February it was working with advisers JPMorgan and Guggenheim Securities to separate its auto-parts operations and transition into a pure-play industrials company. The automotive division generated more than $15 billion in annual sales and operates more than 10,000 locations globally. [1] Consolidating O'Reilly and NAPA would create a dominant player in US aftermarket auto parts, reducing competitive options for independent repair shops and commercial fleets.

The deal is not done. Genuine Parts could still proceed with its original spinoff plan, accept a rival bid, or retain the unit — with a possible announcement by late summer, according to people familiar with the matter. [1] Genuine Parts said the planned separation remained on track for completion in the first quarter of 2027.

-- THEO KAPLAN, San Francisco