India, Oct. 5 -- Shares of CH Robinson Worldwide (CHRW) fell 7.4% in pre-market trading after the company announced a deal to acquire RXO Inc. The deal is worth about $5.8 billion and will combine the two logistics companies into a business valued at more than $25 billion. The main reason for the CH Robinson stock drop is investor concern about the cost of the deal, new debt, and dilution of CHRW shares.

Under the agreement, RXO shareholders will receive $17.25 in cash for each RXO share. They will also receive 0.0856 shares of CH Robinson stock for every RXO share they own. The offer represents a 27% premium to RXO's 90-day volume-weighted average price, according to Investing.com.

About 43% of the total deal payment will be made using...