US Stocks Move | RXO (RXO.US) surges nearly 23% in pre-market after being acquired by C.H. Robinson Logistics (CHRW.US) for $5.8 billions

According to Jinse Finance, C.H. Robinson Worldwide (CHRW.US) has agreed to acquire trucking brokerage RXO (RXO.US) for approximately $5.8 billion, in a move aimed at strengthening the logistics operations of the combined company. In a statement issued by both companies on Monday, RXO shareholders will receive $17.25 in cash and 0.0856 C.H. Robinson Worldwide shares for each RXO share, equivalent to a total consideration of about $30.25 per share—a 29% premium compared to RXO's closing price last Friday. Before the U.S. market opened on Monday, at the time of reporting, C.H. Robinson Worldwide fell nearly 9%, while RXO rose almost 23%.

The transaction is expected to be completed in the first half of 2027. C.H. Robinson Worldwide aims to diversify its business through this deal and fully leverage RXO's strengths in rapid delivery and last-mile logistics. The acquirer plans to use artificial intelligence to improve operations and achieve $300 million in cost savings within two years.

The freight industry is struggling with high costs, including record diesel prices. This merger also comes after a U.S. Supreme Court ruling earlier this year that dealt a significant blow to the truck brokerage market—if a carrier’s driver is involved in a traffic accident, the brokerage could face lawsuits.

C.H. Robinson Worldwide stated it will fund the cash portion of the transaction through new debt financing and has signed a fully underwritten bridge loan agreement with Morgan Stanley Senior Funding. RXO shareholders are expected to own 11% of the combined company after the transaction concludes.

Morgan Stanley serves as financial advisor to C.H. Robinson Worldwide, while Goldman Sachs acts as financial advisor to RXO.