Updated Version 4 - Resending - C.H. Robinson will acquire RXO for $5.8 billion, entering the "last mile" delivery sector
路透社2026/10/05 16:41The third paragraph adds comments from the CEO's interview with CNBC, while the fourth paragraph updates stock price movements. Nandan Mandayam, Reuters, October 5 – C.H. Robinson Worldwide (CHRW.O) announced on Monday that it will acquire smaller rival RXO (RXO.N) for $5.8 billions, marking the company's largest deal to date. The move aims to expand its North American truck brokerage operations and strengthen its “last mile” delivery capabilities. The merged logistics giant, with a scale of $25 billions, will grant C.H. Robinson greater advantages in the highly fragmented freight transportation market. This will help the company secure larger corporate contracts, increase route density, and integrate RXO’s “last mile” services to meet rising market demands for faster and more reliable shipping. “Frankly, RXO has capabilities that C.H. Robinson does not currently have ... and those capabilities align perfectly with our existing strengths,” said C.H. Robinson CEO Dave Bozeman in an interview with CNBC. RXO’s share price surged by 22%, while C.H. Robinson’s stock fell 13%. For every RXO share, shareholders will receive $17.25 in cash and 0.0856 shares of C.H. Robinson, valuing RXO at $30.25 per share—a 29% premium over last Friday’s closing price. RXO will be incorporated into C.H. Robinson’s North American Surface Transportation division, which accounts for more than two-thirds of the company’s revenue. Amid driver shortages caused by regulatory policies, U.S. trucking rates have rebounded, benefiting freight brokers with increased revenues. However, sharp volatility in diesel prices has compressed profit margins, as fuel surcharges and spot rates often lag behind cost increases, creating short-term cash flow pressures. C.H. Robinson said it expects the deal to generate $300 millions in net operating cost synergies within two years and boost adjusted earnings per share within nine months. Over the past year, C.H. Robinson has reduced its workforce as AI agents have taken over tasks like freight pricing, coordinating pickups and deliveries, and tracking shipments in transit. Meanwhile, RXO posted annual losses for both 2024 and 2025 but recently beat profit expectations thanks to improved pricing strategies. The deal is expected to close in the first half of 2027, after which RXO shareholders will hold an 11% stake in the combined company. RXO shares have outperformed the broader S&P 500 benchmark over the past year: https://tmsnrt.rs/3U8qpkf (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Due to possible errors or lack of context in automated translations, Reuters does not guarantee their accuracy and provides them solely for reader convenience. Reuters does not accept any liability for damage or losses arising from the use of automated translation functionality.)
Comments from the CEO’s interview with CNBC were added in the third paragraph, and an update on the stock movement was included in the fourth paragraph.
Nandan Mandayam
Reuters, October 5 - C.H. Robinson Worldwide (CHRW.O) announced on Monday that it will acquire its smaller rival RXO (RXO.N) for $5.8 billion, marking its largest deal to date. The goal is to expand its North American truck brokerage footprint and strengthen its “last-mile” delivery capabilities.
The merged logistics giant, with a scale of $25 billion, will give C.H. Robinson greater scale advantages in the highly fragmented freight market, helping it secure larger corporate contracts, increase route density, and integrate RXO’s “last-mile” delivery capabilities to meet market demand for faster and more reliable transport services.
“Frankly, RXO has some capabilities that C.H. Robinson currently doesn’t have... These capabilities fit perfectly with our existing strengths,” C.H. Robinson CEO Dave Bozeman said in an interview with CNBC.
RXO shares soared 22%, while C.H. Robinson shares fell 13%.
RXO shareholders will receive $17.25 in cash and 0.0856 shares of C.H. Robinson for each RXO share held, valuing the company at $30.25 per share—a 29% premium over last Friday's closing price.
RXO will be merged into C.H. Robinson’s North American surface transportation division, which accounts for more than two-thirds of the company’s revenue.
Against the backdrop of driver shortages due to regulatory policies, U.S. truck freight rates have rebounded, allowing freight brokerages to benefit and boost revenues.
However, sharp fluctuations in diesel prices have been squeezing margins, as fuel surcharges and spot freight rates tend to lag behind cost increases, creating short-term cash flow pressure.
C.H. Robinson stated that it expects the deal to achieve $300 million in net operating cost synergies within two years and boost adjusted earnings per share within nine months.
Over the past year, as AI agents have taken over tasks such as freight pricing, coordinating pickups and deliveries, and tracking shipments, C.H. Robinson has reduced its workforce.
Meanwhile, RXO reported annual losses in both 2024 and 2025, but exceeded expectations in its most recent quarter thanks to improved pricing strategies.
The transaction is expected to close in the first half of 2027, after which RXO shareholders will own 11% of the combined company.
(To assist non-native English speakers, Reuters has automatically translated its report into several other languages. Because automated translation may contain errors or fail to include the required context, Reuters does not guarantee the accuracy of the translated text, which is provided solely for the convenience of readers. Reuters accepts no responsibility for any harm or loss arising from the use of the automated translation function.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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