A major merger is set to take place in the US freight logistics market

American logistics operator C.H. Robinson has agreed to acquire competitor RXO. The deal is valued at $5.8 billion, and upon completion, a combined logistics group with a corporate value exceeding $25 billion will emerge in the US market.

The companies announced the definitive agreement on October 5. The agreement is also disclosed in documents filed with the US Securities and Exchange Commission (SEC).

C.H. Robinson and RXO primarily act as intermediaries between companies that need freight transportation and carriers. They arrange trucking services, manage supply chains, and provide related transportation services. The merger is expected to strengthen C.H. Robinson's position particularly in the US freight transportation market.

The deal involves payment in cash and C.H. Robinson stock. After the closing, current RXO shareholders are expected to receive about 11% of the combined company.

The parties anticipate completing the acquisition in the first half of 2027. Prior to that, the deal must be approved by RXO shareholders and the relevant regulators.

After the merger, C.H. Robinson will gain a broader trucking logistics network in North America, as well as RXO's business in expedited transportation and "last mile" delivery. The company expects that the integration will allow it to reduce costs by approximately $300 million per year within two years after the completion of the deal.

C.H. Robinson also plans to suspend its share repurchase program after the completion of the transaction to more quickly reduce the debt burden that will increase due to the financing of the acquisition.

Based on: C.H. Robinson, RXO, SEC