The C.H. Robinson closed a deal to acquire rival RXO in a transaction worth US$ 5.8 billion in cash and stock, expanding its presence in trucking and adding last-mile delivery operations to its logistics platform. The deal was announced on Monday, the 5th, and still depends on regulatory approvals and approval from RXO shareholders.
The combination will create a company with an enterprise value of more than US$ 25 billion. RXO will be integrated primarily into C.H. Robinson's North American Surface Transportation division, which accounts for more than two-thirds of the company's revenue.
Under the agreement, RXO shareholders will receive US$ 17.25 in cash and 0.0856 of a C.H. Robinson share per share, equivalent to an implied value of US$ 30.25 per share. The price represents a 29% premium over RXO's closing price on October 2.
The structure calls for approximately 57% of the payment to be made in cash and 43% in stock. After completion, RXO's current shareholders are expected to control about 11% of the combined company. The cash portion will be financed with new debt.
Integration targets US$ 300 million in savings
C.H. Robinson estimates it will achieve about US$ 300 million in annual cost synergies within two years after the completion of the transaction. The company intends to apply its operating model based on automation and artificial intelligence to RXO, as well as combine administrative structures and reduce third-party expenses.
The acquisition also adds RXO's express and last-mile delivery operations to C.H. Robinson, complementing its freight brokerage, transportation management and international logistics businesses. The greater network density is seen by the companies as a way to compete for larger contracts and expand the offering for corporate customers.
The market reacted differently to the announcement. Shares of RXO rose 22%, while C.H. Robinson shares fell 13% on Monday, reflecting the premium offered to shareholders of the acquired company and the cost of the transaction for the buyer.
Completion is expected in the first half of 2027. The agreement was unanimously approved by the boards of the two companies, but still needs to receive regulatory authorization and approval from RXO shareholders.
