BENGALURU (Oct 5): Freight forwarding firm CH Robinson Worldwide said on Monday it would buy RXO in a stock-and-cash transaction for US$5.8 billion (RM23.7 billion), as it looks to strengthen its footprint in North America's truck brokerage business.
The US$25 billion combined logistics firm will fold the tech-enabled truck brokerage primarily into CH Robinson's North American Surface Transportation unit, which accounts for over two-thirds of revenue.
RXO, which also offers managed transportation and last-mile delivery, saw its shares jump 23%, while CH Robinson sank 10% in early trading.
RXO shareholders would receive US$17.25 in cash and CH Robinson shares for each RXO share, valuing the company at US$30.25 per share, a 29% premium to last Friday's close.
The deal would expand CH Robinson's last-mile delivery coverage in the US and help it win more large corporate customers, strengthening its position in the highly competitive truck brokerage market.
CH Robinson CEO Dave Bozeman said the deal would allow the company "to create a more scaled, resilient North American third-party logistics provider".
Once the deal closes, the company expects US$300 million of net run-rate cost synergies within two years, with the deal becoming accretive to adjusted earnings per share within nine months.
Over the last year, CH Robinson has reduced its headcount as AI agents took over pricing shipments, coordinating pickups and deliveries, and monitoring cargo in transit.
RXO, meanwhile, reported annual losses in 2024 and 2025, but beat profit expectations in its most recent quarter, thanks to improved pricing.
Freight brokers have benefited from an uptick in trucking rates in the US, amid a regulatory-driven driver shortage, boosting their revenue.
However, sharp swings in diesel prices are squeezing margins, as fuel surcharges and spot rates often lag cost increases, creating short-term cash-flow pressure.
The deal, expected to close in the first half of 2027, will give RXO shareholders ownership of 11% of the combined company.
RXO shares have outpeformed the broader S&P 500 benchmark over the past year.
Uploaded by Tham Yek Lee