News #202623 - CMA CGM strengthens U.S. logistics with FedEx deal

The CMA CGM Group has agreed to acquire FedEx Supply Chain, a subsidiary of FedEx, in a deal valued at an enterprise value of $1.4 billion. The acquisition is aimed at strengthening CMA CGM’s global logistics capabilities across its sea, land and air transportation network. 

With the addition of FedEx Supply Chain’s assets and nearly 10,000 employees, CEVA Logistics is set to strengthen its position as a leading contract logistics provider across the region. The combined operations will include around 150 warehouses, expanding CEVA’s North American network to more than 240 locations supported by a workforce of approximately 20,000 employees. 

CMA CGM and FedEx also plan to establish multi-year commercial agreements covering air and ocean freight services. Under a non-exclusive arrangement, CMA CGM will serve as a preferred ocean carrier for FedEx, providing ocean transportation and carrier services. The two companies will also collaborate on selected air cargo capacity solutions to improve aircraft utilisation, enhance network efficiency, and provide greater flexibility for long-haul operations.

Rodolphe Saade, Chairman and Chief Executive Officer of the CMA CGM Group, said, “The acquisition and partnership with FedEx represent a major step in the development of CEVA Logistics and our logistics activities in North America. 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.”

 "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. 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", added, Raj Subramaniam, President and CEO of FedEx.

The transaction would mark the latest acquisition-led push by CMA CGM chief executive Rodolphe Saade to diversify the group beyond container shipping into logistics, air freight and media. Saade has made US expansion a priority for the world's third-largest container line, having pledged a $20 billion investment over four years during an Oval Office meeting with President Donald Trump last year. 

For FedEx, offloading the unit would let it concentrate on its core air-ground delivery business, following last month's spin-off of FedEx Freight as a standalone public company. FedEx Supply Chain traces its origins to FedEx's $1.4 billion acquisition of Genco Distribution System, completed in January 2015. The deal, first announced in December 2014, brought one of North America's largest third-party logistics providers into the FedEx fold, then led by Genco CEO Todd R. Peters and folded into the FedEx Ground reporting segment. 

Also Read - Unilode introduces fire containment cover leasing CMA CGM has been on an infrastructure acquisition drive in the United States, securing port assets in Los Angeles and New York. Earlier this year, the French shipping giant partnered with investment firm Stonepeak to establish a US-based port venture, United Ports LLC, valued at approximately $10 billion. Under the agreement, CMA CGM will hold a 75% stake, while Stonepeak will invest $2.5 billion for a 25% share. Despite the equity split, CMA CGM will retain full operational control of the venture. 

FedEx Supply Chain operates as a comprehensive third-party logistics provider, running more than 130 distribution centres spanning over 40 million square feet of managed space. Its fulfilment network reaches 96% of the US population within two days, supported by cloud-based platforms and autonomous warehouse robotics. The unit's transportation management services cover air, ocean and ground freight forwarding, customs brokerage and analytics-driven visibility. It is also a major player in reverse logistics, handling returns through QR code-based processes alongside repair, refurbishment and recycling services. Additional offerings include kitting, packaging, labelling and contract manufacturing, capabilities aimed at helping retailers and other businesses scale efficiently while building more resilient supply chains. This story has been updated with information from the official release.

Source: https://www.stattimes.com/air-cargo/cma-cgm-nears-14-billion-fedex-deal-1359674

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