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RXO Stock Jumps 21% After C.H. Robinson Buyout Deal

C.H. Robinson2 min read6 sources

Why is RXO stock up today?

RXO (RXO) stock rose about 21% to near $28 on Monday after C.H. Robinson agreed to buy the freight broker for $5.8 billion, a 29% premium to Friday's close.

Key numbers

Deal value$5.8Bcash and stock
Offer per RXO share$30.25+29% vs Oct 2 close
RXO shares (late morning)$28.39+21%
CHRW shares (late morning)$136.53-13%; premarket was about -5% (per [6])
Net cost savings target$300Mwithin 2 years of close
RXO holders' stake in combined firm11%57% cash, 43% stock deal mix

What happened

RXO (RXO) stock rose about 21% to near $28 on Monday after C.H. Robinson agreed to buy the freight broker for $5.8 billion, a 29% premium to Friday's close. RXO, a freight broker that links businesses shipping goods with truck drivers, will get $17.25 in cash plus 0.0856 C.H. Robinson shares per share, worth $30.25 in total. C.H. Robinson (CHRW) shares fell about 13% to roughly $137, as investors weighed new debt and extra shares issued to pay for the deal. The deal is expected to close in the first half of 2027.

Why it matters

RXO's sale would join two freight brokers into one company worth more than $25 billion, counting debt (its enterprise value). C.H. Robinson says it can cut about $300 million a year in costs within two years, but it must borrow to pay the cash portion and will pause buying back its own shares. RXO shareholders and regulators still have to approve the deal.

Who this affects

Marketmixed
Medium impact
Investors reward RXO holders and punish C.H. Robinson holders.
Companybullish
High impact
RXO shareholders gain a 29% premium; the deal ends independence.
Competitorsneutral
Low impact
Rival brokers face a larger competitor; impact unclear.
Industrymixed
Medium impact
Truck brokerage consolidates; regulators may scrutinize the combination.

RXO vs C.H. Robinson, Landstar, Hub Group

RXORXO$23.38$28.39+21%—
C.H. RobinsonCHRW$157.72$136.53-13%—
LandstarLSTR————
Hub GroupHUBG————

As of 2026-10-05T15:28:00Z

How we got here

  1. RXO closes at $23.38 after a 9.46% Friday gain, the base for the 29% premium.

  2. C.H. Robinson announces $5.8B RXO purchase; both boards approve unanimously.

  3. By late morning RXO is up about 21% and C.H. Robinson down about 13%.

  4. Deal expected to close in first half of 2027, pending approvals.

What to watch

  • RXO shareholder vote and regulatory approval; MFN Partners (about 17% holder) has agreed to vote in favor.H1 2027
  • Whether C.H. Robinson delivers $300M in net savings and profit accretion within nine months of closing.2027
  • C.H. Robinson's debt target of 1.75x–2.25x EBITDA; share buybacks paused until reached.2028-12-31

Educational content only. Not investment advice.

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