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(Edaily reporter Yoo Hyeon-jeong) Freight brokerage company RXO (RXO) agreed on the 24th (local time) to acquire the Coyote Logistics business of United Parcel Service (UPS) for US$1.025 billion.
In response to the news, RXO shares surged 22% to $24.77 in afternoon trading today.
UPS shares were trading around $138, up 1.4 percent.
“As UPS has become the world’s leading small package provider and logistics partner, the decision to sell the Coyote Logistics business allows us to better focus on our core business,” UPS CEO Carol B. Tome revealed in a statement.
Coyote’s current freight mix is 79% truckload, 19% LTL or less than truckload, and 2% intermodal.
RXO said the transaction will be immediately accretive to its earnings per share and free cash flow.
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