Trucking giants Swift Transportation Co (NYSE:SWFT) and Knight Transportation (NYSE:KNX) have agreed to merge in a deal that will create a $5 billion trucking behemoth.

Written by StockNews.com

The Wall Street Journal has details on the transaction:

As part of the deal, to be announced Monday, each Swift share would be converted into 0.72 share of the new entity through a reverse stock split. Knight shares would be exchanged one-for-one. Swift shareholders would own 54% of the new company, with Knight holders owning the rest.

While each company’s brand and business will remain separate, the new parent company will be named Knight-Swift Transportation Holdings Inc. The new company will boast 23,000 truck-tractors and have 28,000 employees.

According to market researchers SJ Consulting Group, Swift is currently the fifth largest trucking company in the U.S., while Knight is the 22nd largest. Shipping giants UPS and FexEx lead the industry in terms of market cap.

...Year-to-date, SWFT has declined -17.82%, versus a 5.68% rise in the benchmark S&P 500 index during the same period and currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #7 of 19 stocks in the Trucking Freight category.

...Year-to-date, KNX has declined -7.09%...[and] currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #8 of 19 stocks in the Trucking Freight category.