C.H. Robinson leaders tackle RXO friction concerns

C.H. Robinson Worldwide executives on Oct. 28 pushed back against analysts’ concerns that the RXO acquisition could create operational overlap and friction. The Eden Prairie, Minn.-based logistics and shipping company announced Oct. 5 that it had entered into a definitive agreement to acquire RXO in a stock-and-cash transaction at an implied value of $5.8 billion. Leadership had the chance to discuss the deal and address concerns over customer and workforce friction when discussing third-quarter financial results. “We feel strong about the overlap number being very manageable for us in terms of the process,” said Michael Castagnetto, president of North American Surface Transportation. “We’re going to operate a work-backwards-from-the-customer mentality and make sure that they get the best experience possible of the two companies.” Castagnetto also doesn’t anticipate having to reject loads that were gained in the deal over profitability issues. RXO, he pointed out, is already a top-line growth company, so the acquisition should actually support that with an improved cost to serve and pricing models, alongside the combined data and teams from both companies. CHRW Quotes by TradingView See more transportation stock listings “There’s a couple places where we are really strong in the industry,” Castagnetto said. “There are a couple places they’re super strong in the industry — last mile, expedite — where we don’t crossover really at all. And so there’s a lot of opportunities we think from a synergy perspective there. There are large parts of the for-hire market we have zero crossover.” C.H. Robinson leadership also emphasized its Lean AI strategy, which combines custom agentic…

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