Additional Coverage:
French shipping giant CMA CGM Group announced on Wednesday its plan to acquire FedEx Supply Chain, the logistics subsidiary of FedEx, for $1.4 billion. This move aims to significantly boost CMA CGM’s footprint in the U.S. logistics market.
The acquisition will triple the size of CMA CGM’s existing logistics division, CEVA Logistics, strengthening its position as a leading contract logistics provider across North America. As part of its broader growth strategy, CMA CGM has committed to investing $20 billion in U.S. warehousing, air cargo, and logistics infrastructure over the next four years, starting in 2025.
Both companies also indicated they intend to establish multiyear agreements covering air and ocean freight services, further expanding their collaboration.
Rodolphe Saadé, CEO of CMA CGM Group, emphasized that the deal underscores the company’s dedication to long-term investment in the U.S. and enhancing the resilience and efficiency of its supply chains.
Meanwhile, FedEx, headquartered in Memphis, Tennessee, continues to streamline its operations by divesting non-core businesses to focus on its delivery services. This includes prioritizing higher-margin business-to-business deliveries in sectors such as healthcare, automotive, aerospace, and data centers. FedEx recently completed the spinoff of FedEx Freight, its heavy and bulky shipment transport arm, on June 1.
The acquisition is anticipated to finalize later this year, pending regulatory approval, while the complementary air cargo and ocean freight agreements are expected to be implemented in stages between 2026 and 2028.