C.H. Robinson agrees to buy RXO for 5.8 billion dollars
Freight broker C.H. Robinson agreed to acquire RXO in a cash-and-stock transaction valued at approximately 5.8 billion dollars. The standard offer combines 17.25 dollars in cash and 0.0856 C.H. Robinson shares for each RXO share. The companies expect closing in the first half of 2027, subject to regulatory and shareholder approvals, and target annual cost savings of 300 million dollars.
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C.H. Robinson signs a cash-and-stock acquisition
C.H. Robinson, a freight brokerage and transportation-services company, agreed to acquire RXO in a transaction valued at approximately 5.8 billion dollars. The companies announced the definitive merger agreement on October 5. The proposed combination brings together C.H. Robinson’s global transportation services and RXO’s North American brokerage, expedited services and last-mile delivery operations.[1], [2]
Under the standard offer, each RXO share would receive 17.25 dollars in cash and 0.0856 C.H. Robinson common shares. The implied total is 30.25 dollars, based on C.H. Robinson’s sixteen-day volume-weighted average price of 151.88 dollars as of October 2. This represents a 29 per cent premium to RXO’s October 2 close and 27 per cent to its ninety-day volume-weighted average.[1]
Shareholder choices have allocation limits
RXO shareholders can instead elect 30.25 dollars entirely in cash or 0.1992 C.H. Robinson shares entirely in stock. Those choices are subject to proration and adjustment so that aggregate consideration remains approximately 57 per cent cash and 43 per cent stock. RXO shareholders are expected to own about 11 per cent of the combined company at closing.[1]
Both boards unanimously approved the agreement. MFN Partners, which holds approximately 17 per cent of RXO, committed to vote its shares in favour and, subject to specified exceptions, not transfer them. C.H. Robinson plans to finance the cash portion with new debt and has obtained a fully underwritten bridge commitment from Morgan Stanley Senior Funding.[1]
First-half 2027 closing awaits approvals
The companies expect completion in the first half of 2027, subject to customary closing conditions, regulatory approvals and an RXO shareholder vote. RXO would be integrated mainly into C.H. Robinson’s North American surface transportation division. Management targets 300 million dollars of annual net cost savings within two years after closing. Chief executives Dave Bozeman and Drew Wilkerson said the combination would broaden the transportation network and technology capabilities. The savings are a company expectation for the period after completion.[1]
