US Stock Market Move | RXO (RXO.US) rose nearly 23% in premarket trading on being acquired by C.H. Robinson (CHRW.US) for $5.8 billion.

C.H. Robinson (CHRW.US) has agreed to acquire trucking brokerage RXO (RXO.US) for approximately $5.8 billion, a move aimed at strengthening the combined company's logistics business. The two companies said in a statement on Monday that RXO shareholders will receive $17.25 in cash and 0.0856 shares of C.H. Robinson stock per share, representing consideration of approximately $30.25 per share, a 29% premium to RXO's closing price last Friday. In U.S. premarket trading on Monday, as of press time, C.H. Robinson fell nearly 9%, while RXO rose nearly 23%. The transaction is expected to close in the first half of 2027. C.H. Robinson aims to diversify its business through the deal and fully leverage RXO's strengths in expedited delivery and last-mile logistics. The acquirer plans to use artificial intelligence to improve operations and achieve $300 million in cost savings within two years. The freight industry is struggling with high costs, including record diesel prices. The merger also comes after a U.S. Supreme Court ruling earlier this year that dealt a massive blow to the trucking brokerage marketbrokerages could face lawsuits if a carrier company's driver is involved in a traffic accident. C.H. Robinson said it will fund the cash portion of the transaction through new debt financing and has entered into a fully underwritten bridge loan agreement with Morgan Stanley Senior Funding, Inc. RXO shareholders are expected to hold 11% of the combined company after the transaction closes. Morgan Stanley is serving as financial advisor to C.H. Robinson, and Goldman Sachs Group, Inc. is serving as financial advisor to RXO.