CMA CGM to Acquire FedEx Supply Chain for $1.4 Billion
The French shipping giant aims to expand its North American logistics presence with the deal.
French shipping company CMA CGM Group announced Wednesday it will acquire FedEx Supply Chain, a third-party logistics subsidiary of FedEx, for $1.4 billion. The acquisition is designed to bolster CMA CGM Group's presence in North America and significantly expand its logistics arm, CEVA Logistics.
The deal is expected to triple the size of CEVA Logistics and underscores CMA CGM Group's commitment to investing in the United States. Rodolphe Saadé, CEO of CMA CGM Group, stated that the acquisition will "reinforce our long-term commitment to investing in the United States and supporting the resilience and efficiency of its supply chain."
In conjunction with the acquisition, CMA CGM Group pledged to invest $20 billion over four years in U.S. warehousing, air cargo, and logistics, beginning in 2025. The two companies also anticipate entering into multiyear air and ocean freight commercial agreements.
FedEx, which is headquartered in Memphis, Tennessee, has been divesting certain business units to concentrate on its core delivery operations. This includes a focus on higher-margin business-to-business deliveries for sectors such as healthcare, automotive, aerospace, and data centers. The company finalized the spinoff of FedEx Freight, which handles heavy and bulky shipments, on June 1.
The transaction is anticipated to be completed later this year, pending regulatory approval. The commercial agreements for air cargo and ocean freight are expected to be finalized in phases between 2026 and 2028.