According to CMA CGM, the expanded operation will have a workforce of 20,000 people across more than 240 locations in North America. (Christophe Morin/Bloomberg)
| Update:
key takeaways:
- FedEx agreed on July 1 to sell FedEx Supply Chain to CMA CGM Group for $1.4 billion.
- CMA CGM said the deal will nearly triple CEVA Logistics’ North American contract logistics operations and add approximately 10,000 employees.
- The acquisition is expected to be completed in 2026, pending regulatory approval, with related freight agreements to be phased in from 2026 to 2028.
FedEx Corp. Agreed to sell its FedEx supply chain subsidiary to CMA CGM Group for $1.4 billion, a deal that will rapidly expand the French shipping company’s North American contract logistics business.
The transaction, announced July 1, will nearly triple the North American contract logistics operations of CMA CGM’s logistics subsidiary CEVA Logistics. The acquisition is expected to be completed in 2026, pending customary regulatory approvals, the companies said.
FedEx Supply Chain is the third-party logistics unit of FedEx, which provides warehousing, distribution and fulfillment services for customers. CMA CGM said the acquisition will add approximately 10,000 FedEx supply chain team members to CEVA Logistics and give the combined North American business approximately 150 warehouses.
According to CMA CGM, the expanded operation will have a workforce of 20,000 people across more than 240 locations in North America.
“The acquisition and partnership with FedEx represents a major step in the development of CEVA Logistics and our logistics activities in North America,” said Rodolphe Saade, President and CEO of CMA CGM. “We are strengthening our ability to provide integrated supply chain solutions to customers. These deals also strengthen our long-term commitment to investing in the United States and supporting the resiliency and efficiency of its supply chain.”
The deal reflects CMA CGM’s effort to build end-to-end logistics services in North America. The company said the acquisition consolidates more than 25 years of investment in the US supply chain and accelerates its strategy to provide comprehensive logistics services.
For FedEx, the divestiture is another step toward streamlining its portfolio around selected transportation and logistics priorities. The move comes on the heels of FedEx spinning off its less-than-truckload division, FedEx Freight.
“Today’s announcement enables FedEx to continue its focus on providing our unique expertise to high-value sectors including healthcare, automotive, aerospace and data centers,” said Raj Subramaniam, FedEx Chairman and CEO. “By streamlining our portfolio, FedEx is better positioned to execute on our long-term vision and serve as the heartbeat of the industrial economy, providing unmatched connectivity, reliability and value to our customers globally. We look forward to leveraging our complementary relationship with global logistics solutions provider CMA CGM to support the next chapter for the FedEx supply chain and its team members.”
The companies are also expected to enter into a multi-year commercial agreement covering sea and air freight services. Under a non-exclusive agreement, CMA CGM will become a preferred ocean carrier for FedEx, providing ocean transportation and carrier services.
The companies also plan to work together on select air cargo capacity arrangements aimed at improving aircraft utilization and providing flexible longhaul capacity across their networks. Those sea and air freight agreements are expected to be rolled out in phases between 2026 and 2028.
Morgan Stanley and Messier & Associates are serving as financial advisors to CMA CGM, while Cleary Gottlieb is serving as legal advisor. JPMorgan is serving as financial advisor to FedEx, and Baker McKenzie is serving as legal advisor.
FedEx is ranked No. 2 on Transportation Topics’ Top 100 Companies list in North America, No. 3 on the Top 50 list of the largest global freight companies, and No. 40 on the Top 100 list of largest logistics companies.
CMA CGM is ranked sixth in the global freight forwarder TT50. Its subsidiary Seva Logistics is ranked 23rd in the Logistics TT100.
Aided by AI.
