CH Robinson to Buy RXO for $5.8B in Bet on AI Model

CH Robinson agreed to buy trucking brokerage firm RXO Inc. in a deal centered around a bet that artificial intelligence can help the companies improve efficiency in a challenging freight market. Through a cash-and-stock transaction valued at about $5.8 billion, CH Robinson aims to diversify its business and capitalize on RXO’s abilities in expedited and last-mile delivery. CH Robinson, which has been using AI to transform its operations to become leaner, intends to use the system to extract $300 million of cost savings within two years. Lee Klaskow, Bloomberg Intelligence Senior Transport, Logistics and Shipping Analyst says that the $300 million estimate could be conservative. (Source: Bloomberg)