CH Robinson to acquire RXO in $5.8bn freight brokerage deal

CH Robinson has agreed to acquire freight brokerage business RXO in a transaction valued at approximately $5.8bn, creating a larger logistics operation focused on freight brokerage, expedited transport and last-mile delivery. Under the terms announced on October 5, RXO shareholders will receive $17.25 in cash and 0.0856 CH Robinson shares for each RXO share. The implied value is $30.25 per share, representing a 29% premium to RXO’s closing price on October 2. The transaction is expected to close in the first half of 2027, subject to customary conditions. RXO shareholders are expected to own approximately 11% of the combined company once the deal is completed.

The acquisition comes as freight markets face cost pressure and difficult operating conditions. CH Robinson said the deal would diversify its business and add RXO’s capabilities in expedited and last-mile delivery, areas that are increasingly important as shippers seek more flexible transport options and tighter delivery windows. The combined business also plans to use artificial intelligence to improve operations and is targeting $300m in cost savings within two years.

The cash element will be funded through new debt financing, including a fully underwritten bridge facility. That financing structure will add leverage considerations as the businesses are integrated, while the promised savings will depend on the successful alignment of systems, teams and carrier networks. Although the transaction is centred on the US market, it will be relevant to European logistics providers and shippers with international freight requirements. A larger CH Robinson organisation could strengthen its ability to offer connected transport services across modes and geographies, while the deal may also add to wider consolidation pressure among logistics intermediaries.