C.H. Robinson agreed on October 5 to acquire RXO for an implied $5.8 billion in cash and shares, the companies announced in the United States. The proposed combination of the two logistics businesses would expand its North American freight brokerage and last-mile delivery capabilities. Reuters also reported the agreement on Monday.
The companies said the deal would connect their trucking brokerage and managed transportation operations with Robinson’s global forwarding network and RXO’s expedited and final-delivery services. They put the combined enterprise value above $25 billion and said a denser network would broaden customer options.
Under the standard terms, each RXO share would receive $17.25 in cash and 0.0856 Robinson shares. The announced implied value of $30.25 per share represents a 29% premium to RXO’s October 2 closing price. The companies expect RXO investors to own about 11% of the combined business after completion.
Robinson projects $300 million in annual net cost savings within two years of closing, using its Lean AI operating model to improve productivity. It expects the purchase to lift adjusted earnings per share within nine months. These are company forecasts, with the gains depending on implementation after the transaction closes.
Reuters reported that rising US trucking rates have supported freight brokers, while sharp diesel-price swings have squeezed margins because fuel surcharges and spot rates can lag costs. RXO recorded annual losses in 2024 and 2025, but improved pricing helped it beat profit expectations in its latest quarter, the news agency said.
Both boards unanimously approved the agreement, according to the joint announcement. Completion is expected in the first half of 2027, subject to regulatory and RXO shareholder approvals and other customary conditions. Robinson plans new borrowing to fund the cash payment and would integrate RXO mainly into its North American Surface Transportation division.
Comments