RXO Stock Surges After C.H. Robinson Announces Acquisition
Shares of RXO surged over 20% on news that it will be acquired by C.H. Robinson, the largest freight brokerage in North America. The deal involves a mix of cash and stock, offering $17.25 per share plus 0.0856 shares of CHRW for each RXO share, totaling an implied value of $30.25 per share before accounting for recent declines in CHRW's price. The acquisition was approved by both companies' boards and supported by RXO’s largest shareholder, Orbis Investments. However, C.H. Robinson stock fell sharply on the news as investors questioned its capital allocation decision. The deal faces regulatory hurdles due to concerns over anti-competitive practices given CHRW is already a market leader. The transaction represents a 29% premium over RXO's closing price and includes an option for shareholders to receive all cash, all stock, or a combination of both. If the acquisition fails to close by mid-2027 due to regulatory issues, RXO would owe CHRW $175 million in termination fees.
