CMA CGM to buy FedEx Supply Chain for $1.4 billion

The expanded operation would have a workforce of 20,000 people across more than 240 locations in North America, according to CMA CGM. (Christophe Morin/Bloomberg)

FedEx Corp. agreed to sell its FedEx Supply Chain subsidiary to CMA CGM Group for $1.4 billion, a deal that would sharply expand the French shipping company’s North American contract logistics business.

The transaction, announced July 1, would nearly triple the North American contract logistics operations of Ceva Logistics, CMA CGM’s logistics subsidiary. The companies said the acquisition is expected to close in 2026, pending customary regulatory approvals.

FedEx Supply Chain is FedEx’s third-party logistics unit, providing warehousing, distribution and fulfillment services for customers. CMA CGM said the acquisition would add nearly 10,000 FedEx Supply Chain team members to Ceva Logistics and give the combined North American business about 150 warehouses.

The expanded operation would have a workforce of 20,000 people across more than 240 locations in North America, according to CMA CGM.

“The acquisition and partnership with FedEx represent a major step in the development of Ceva Logistics and our logistics activities in North America,” CMA CGM Chairman and CEO Rodolphe Saadé said. “We are strengthening our ability to provide customers with integrated supply chain solutions. These deals also reinforce our long-term commitment to investing in the United States and supporting the resilience and efficiency of its supply chain.”

The deal reflects CMA CGM’s push to build out end-to-end logistics services in North America. The company said the acquisition reinforces more than 25 years of investment in the U.S. supply chain and accelerates its strategy to provide broader logistics services.

For FedEx, the divestiture marks another step in streamlining its portfolio around selected transportation and logistics priorities. The move comes shortly after FedEx spun off FedEx Freight, its less-than-truckload division.

“Today’s announcement enables FedEx to further increase our focus on providing our unique expertise for high-value verticals, including healthcare, automotive, aerospace and data centers,” FedEx President and CEO Raj Subramaniam said. “By streamlining our portfolio, FedEx is better positioned to execute our long-term vision and continue to serve as the heartbeat of the industrial economy, delivering 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 FedEx Supply Chain and its team members.”

The companies also expect to enter multiyear commercial agreements covering ocean and airfreight services. Under a nonexclusive agreement, CMA CGM would 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 intended to improve aircraft use and provide flexible longhaul capacity across their networks. Those ocean and airfreight agreements are expected to begin in phases between 2026 and 2028.

Morgan Stanley and Messier & Associés are serving as financial advisers to CMA CGM, while Cleary Gottlieb is serving as legal counsel. JPMorgan is serving as financial adviser to FedEx, and Baker McKenzie is serving as legal counsel.

FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire companies 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 the largest logistics companies.

CMA CGM ranks No. 6 on the global freight TT50. Ceva Logistics ranks No. 23 on the logistics TT100.

Assisted by AI.