C.H. Robinson to buy RXO for $5.8 billion, pushing into last-mile delivery (updated)

C.H. Robinson Worldwide

05/10/2026 12:15

Adds CEO comment to CNBC in paragraph 3, updates share movement in paragraph 4
By Nandan Mandayam
Oct 5 (Reuters) - C.H. Robinson Worldwide CHRW.O said on Monday it would acquire smaller rival RXO RXO.N for $5.8 billion, its biggest deal yet, to expand its North American truck-brokerage footprint and strengthen last-mile delivery.
The $25 billion combined logistics firm would give C.H. Robinson greater scale in the fragmented freight market, helping it win larger corporate contracts, improve route density and add RXO's last-mile delivery capabilities to meet demand for faster, more reliable shipments.
"RXO has some capabilities that, quite frankly, at Robinson, we don't play in... that can click into our capabilities," C.H. Robinson CEO Dave Bozeman told CNBC in an interview.
Shares of RXO jumped 22%, while C.H. Robinson sank 13%.
RXO shareholders would receive $17.25 in cash and 0.0856 C.H. Robinson shares for each RXO share, valuing the company at $30.25 per share, a 29% premium to Friday's close.

RXO would be integrated into C.H. Robinson's North American Surface Transportation unit, which generates over two-thirds of its revenue.
Freight brokers have benefited from an uptick in trucking rates in the US, amid a regulatory-driven driver shortage, boosting their revenue.
However, sharp swings in diesel prices are squeezing margins, as fuel surcharges and spot rates often lag cost increases, creating short-term cash-flow pressure.
The transaction is expected to deliver $300 million in net run-rate cost synergies within two years and lift adjusted EPS within nine months, C.H. Robinson said.
Over the last year, C.H. Robinson has reduced its headcount as AI agents took over pricing shipments, coordinating pickups and deliveries, and monitoring cargo in transit.
RXO, meanwhile, reported annual losses in 2024 and 2025, but beat profit expectations in its most recent quarter, thanks to improved pricing.
The deal, expected to close in the first half of 2027, will give RXO shareholders ownership of 11% of the combined company.

RXO shares have outpeformed the broader S&P 500 benchmark over the past year https://tmsnrt.rs/3U8qpkf
 (Reporting by Anshuman Tripathy and Nandan Mandayam in Bengaluru; Editing by Vijay Kishore)
 ((Anshuman.Tripathy@thomsonreuters.com;))