O’Reilly Automotive has reportedly submitted a $10 billion cash bid to acquire Genuine Parts Company’s automotive parts business, which operates as NAPA Auto Parts.

Bloomberg reported July 2 that O’Reilly made the offer to GPC, citing people familiar with the matter. The automotive parts unit could be valued at $10 billion or more in a potential transaction, according to summaries of the report. Genuine Parts could still decide to retain the business or continue pursuing its planned spinoff, with a potential deal announcement possible by late summer, according to a Yahoo Finance writeup of the report.

The reported bid comes less than five months after Atlanta-based Genuine Parts announced plans to separate its automotive and industrial parts businesses into two independent, publicly traded companies. That Feb. 17 announcement outlined plans for one company comprising GPC’s Automotive Parts Group — doing business as NAPA — and another comprising its Industrial Parts Group, which does business as Motion.

GPC said at the time that the separation was intended to “sharpen customer and market alignment,” increase clarity and speed, simplify operations and enable business-specific investments. The company said the planned transaction was targeted for completion in the first quarter of 2027, subject to customary conditions.

GPC’s automotive parts business operates across North America, Europe and Australasia, while Motion serves industrial customers across North America and Australasia. In February, GPC said its overall network spanned more than 10,800 locations across 17 countries and was supported by more than 65,000 employees.

The automotive parts division generated more than $15 billion in sales last year and operates more than 10,000 locations globally, according to the report summary.

Shares of Genuine Parts rose sharply following the reported bid, while O’Reilly shares declined.

O’Reilly’s reported offer introduces a potential alternative path for GPC’s automotive business as the company continues work on its planned separation of NAPA and Motion. GPC announced the split as part of a broader plan to create two focused companies with separate leadership teams, capital structures and strategic priorities.

MDM Analysis

A potential O’Reilly acquisition of GPC’s automotive parts business would represent a major reshaping of the automotive aftermarket distribution landscape, combining two of the sector’s most recognizable store and service-channel brands. For distributors, the key implication would be scale: a larger O’Reilly-NAPA platform could have greater purchasing leverage, expanded geographic density and a broader mix of retail, commercial and independent service-shop relationships.

That could intensify competitive pressure on regional automotive parts distributors, particularly in markets where O’Reilly and NAPA already overlap. At the same time, any divestitures or integration challenges tied to a deal of this size could create openings for independents that are highly responsive, specialized or deeply embedded with local repair customers.

The report also adds a new layer of uncertainty to GPC’s planned separation of NAPA and Motion. Distributors should watch whether GPC continues toward a 2027 spinoff, pursues a sale of the automotive business or uses the reported bid as a benchmark for valuation.