CMA CGM to acquire FedEx Supply Chain and collaborate on airfreight

CMA CGM Group has entered into an agreement to acquire FedEx Supply Chain for $1.4 billion, a move that will significantly expand the North American footprint of its subsidiary, CEVA Logistics. The deal includes a strategic partnership where both companies will collaborate on air cargo capacity solutions and ocean freight services through 2028. This transaction marks a major shift in the logistics landscape as FedEx streamlines its portfolio to focus on high-value verticals while CMA CGM strengthens its integrated supply chain capabilities in the United States.

CMA CGM Group is set to acquire FedEx Supply Chain for an enterprise value of $1.4 billion, a move expected to close later this year subject to regulatory approvals. The acquisition will nearly triple the size of the North American contract logistics operations for CEVA Logistics, a subsidiary of the CMA CGM Group. Rodolphe Saadé, chairman and chief executive of CMA CGM, emphasized that this partnership strengthens the company’s ability to provide integrated supply chain solutions and reinforces its commitment to investing in the resilience and efficiency of the United States' supply chain.

Following the transaction, the two companies plan to enter multi-year commercial agreements for air and ocean freight that will commence in phases through 2028. They will work together on specific air cargo capacity solutions designed to enhance global networks, improve aircraft utilization, and provide flexible long-haul capacity. Furthermore, CMA CGM will become a preferred ocean carrier for FedEx under a non-exclusive agreement, providing ocean transport and carrier services to the global delivery giant.

FedEx president and CEO Raj Subramaniam stated that the sale allows FedEx to increase its focus on high-value verticals including healthcare, automotive, aerospace, and data centers. By streamlining its portfolio, FedEx aims to better execute its long-term vision and provide unmatched connectivity as the heartbeat of the industrial economy. This acquisition follows other recent moves by CMA CGM to expand its logistics and aviation footprint, including a preliminary agreement to acquire Crystal Aero Solutions, which specializes in aircraft maintenance services.