C.H. Robinson to Buy RXO for $5.8 Billion

Two brokers, one company

C.H. Robinson Worldwide has agreed to buy transportation broker RXO in a stock-and-cash deal worth $5.8 billion, Reuters reported Monday.

RXO shares rose about 24 percent before the open. The combination puts two of the larger U.S. freight brokers under one roof.

Why freight is consolidating

Brokerage margins have been thin since the post-pandemic freight slump. Scale is the usual answer: more loads on the same technology and fewer overlapping sales teams.

The deal sits beside Schneider's PTC bid as the second large agreement of the morning. Both are buyers paying up for a platform they do not want to build.