Pull to refresh
Logo
C.H. Robinson agrees to buy RXO in $5.8 billion freight deal

C.H. Robinson agrees to buy RXO in $5.8 billion freight deal

Money Moves

The largest brokerage merger in history combines the No. 1 and No. 3 U.S. truck brokers

Today: RXO shares surge 20% on merger news

Overview

Updated 1 hour ago

C.H. Robinson, America's largest freight broker, agreed to buy rival RXO for $5.8 billion in cash and stock. The deal combines the No. 1 and No. 3 truck brokerages in the country into a company worth more than $25 billion.

The acquisition adds RXO's expedited and last-mile delivery networks to C.H. Robinson's global forwarding business. C.H. Robinson expects $300 million in annual cost savings within two years by applying its AI-driven operating model to RXO's operations.

Why it matters

The merger concentrates the U.S. freight brokerage market into fewer, larger players, giving C.H. Robinson more leverage over shippers and carriers.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

$5.8B
Total deal value
Implied enterprise value of the RXO acquisition in cash and stock.
$30.25
Implied consideration per RXO share
Cash and stock mix, a 27% premium to RXO's 90-day average price.
$300M
Expected annual cost synergies
Net run-rate savings within two years of closing, per C.H. Robinson.
27%
Premium to RXO's 90-day VWAP
RXO stockholders also get a 29% premium to the Oct. 2 closing price.
11%
RXO stockholders' stake in combined company
RXO shareholders will own 11% of the combined company after close.

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

Sign up to generate historical perspectives on this story.

People Involved

Organizations Involved

Timeline

November 2022 October 2026

4 events Latest: Today
Tap a bar to jump to that date
  1. RXO shares surge 20% on merger news

    Today Market Reaction

    RXO stock jumps more than 20% while C.H. Robinson shares fall nearly 11% as investors digest the deal.

  2. C.H. Robinson announces $5.8 billion acquisition of RXO

    Announcement

    The largest brokerage merger in history is made public, with closing expected in H1 2027.

  3. RXO spins off from XPO Logistics

    Corporate Action

    XPO Logistics separates its truck brokerage business into a standalone public company.

Scenarios

1

C.H. Robinson completes RXO acquisition, creating $25B logistics giant

Likely Resolves by Jul 4, 2027

Discussed by: FreightWaves, company executives

The deal closes in the first half of 2027 as planned. MFN Partners' 17% stake is already committed to vote in favor. C.H. Robinson integrates RXO into its North American Surface Transportation division and begins realizing the $300 million in annual cost savings.

2

Regulators impose conditions or block the $5.8 billion merger

Possible Resolves by Jul 4, 2027

Discussed by: Antitrust observers

The deal combines the two largest U.S. truck brokerages. While the overall freight market is fragmented, regulators could scrutinize concentration in brokerage services. The merger agreement includes a $175 million termination fee, suggesting both sides expect it to close.

3

RXO deal collapses, $175 million termination fee triggered

Unlikely Resolves by Jul 4, 2027

Discussed by: Deal-watchers

The merger falls apart, either because RXO accepts a superior proposal or the parties fail to close by the outside date. C.H. Robinson's stock fell nearly 11% on the announcement, signaling some investor skepticism about the price.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

November 2022

RXO spinoff from XPO (November 2022)

XPO Logistics spun off its truck brokerage business as RXO in November 2022, creating a standalone Fortune 1000 company. The spinoff separated XPO's less-than-truckload and brokerage operations to unlock shareholder value.

Then

RXO began trading on the NYSE as an independent company.

Now

RXO operated independently for nearly four years before agreeing to be acquired by C.H. Robinson.

Why this matters now

The company being acquired was itself created by a major corporate restructuring just four years earlier, showing how quickly logistics assets change hands.

October 2023

Convoy's collapse (October 2023)

Convoy, a venture-backed digital freight brokerage once valued at $3.8 billion, shut down in October 2023 after a brutal freight recession. The company had raised more than $1 billion from investors including Jeff Bezos and Bill Gates.

Then

Convoy's technology and assets were later acquired by Flexport.

Now

The collapse signaled the depth of the freight downturn and the difficulty of profitable brokerage at scale.

Why this matters now

The same freight market downturn that killed Convoy is driving consolidation, as larger brokers like C.H. Robinson buy scale and efficiency.

Sources

(8)