C.H. Robinson Loads Up on RXO in a $5.8 Billion Freight Deal
Your daily brief on leadership and business
C.H. Robinson has signed a definitive agreement to acquire RXO in a stock-and-cash transaction valued at about US$5.8 billion. Together, the two companies would form a third-party logistics business with an enterprise value of more than US$25 billion. In an industry where trucks are measured by the load, this is a rather large one.
RXO shareholders would receive an implied total of US$30.25 per share, paid through a mix of cash and C.H. Robinson stock. After closing, they are expected to own about 11% of the combined company. Both boards have unanimously approved the merger agreement, and closing is expected in the first half of 2027, subject to regulatory clearance, an RXO shareholder vote and other customary conditions.
How the pieces fit
The deal combines C.H. Robinson's global multimodal network with RXO's North American brokerage, expedited transportation and last-mile capabilities. Trucking brokerage and managed transportation operations would be merged, and C.H. Robinson's global forwarding business would be paired with RXO's expedited and last-mile units. Most of RXO would be folded into C.H. Robinson's North American Surface Transportation division.
President and CEO Dave Bozeman described the purchase as "a natural next step in our transformation," aimed at building a more scaled and resilient North American logistics provider. RXO Chairman and CEO Drew Wilkerson pointed to the companies' complementary capabilities, talented teams and shared commitment to service.
The synergy math
C.H. Robinson expects about US$300 million in annual run-rate cost synergies within two years of closing. Part of the plan is to apply its Lean AI operating model across RXO's operations, which suggests that a good chunk of the savings will come from software doing work that used to require phone calls and spreadsheets. Until the deal closes, the two companies will continue to operate separately, which in freight terms means they keep driving in their own lanes for now.