C.H. Robinson announced a $5.8 billion acquisition of RXO in a stock-and-cash deal, expecting $300 million in annual cost synergies. However, investors reacted negatively to the news, concerned about the company taking on approximately $3 billion in new debt and pausing share buybacks. C.H. Robinson stock fell 12.7% while RXO gained 21.9%.
Axe note: The freight giant's $5.8 billion RXO acquisition sparks concern over leverage and halted buybacks.