USD 1.4 Billion Deal: CMA CGM Acquires FedEx Supply Chain to Accelerate North American Expansion

French shipping and logistics giant CMA CGM has reached an agreement to acquire FedEx Supply Chain in a transaction valued at USD 1.4 billion. The acquisition is regarded as a strategic addition that will further strengthen the group's integrated logistics platform through CEVA Logistics.

The deal will substantially expand CMA CGM's presence in the North American contract logistics market - one of the group's key strategic regions - as it continues to diversify its business and reduce its reliance on container shipping.

Upon completion of the transaction, FedEx Supply Chain will be fully integrated into CEVA Logistics, CMA CGM's logistics subsidiary.

Significant Expansion of Contract Logistics Operations in North America

Following the acquisition, CEVA's contract logistics operations in North America are expected to nearly triple in size.

The combined business will operate approximately 150 distribution and logistics centers, increasing CEVA's North American network to more than 240 facilities, supported by a workforce of around 20,000 employees.

FedEx Supply Chain currently employs nearly 10,000 people and has established expertise in contract logistics, order fulfillment, and supply chain management.

Expanding Strategic Multimodal Transportation Cooperation

In addition to the acquisition, CMA CGM and FedEx are expected to enter into long-term commercial cooperation agreements covering both ocean freight and air cargo services.

Under the proposed arrangement, CMA CGM will become one of FedEx's preferred ocean shipping partners on a non-exclusive basis.

The two companies also plan to expand their collaboration in selected air freight operations, aiming to improve fleet utilization while adding long-haul transportation capacity to support the global logistics networks of both groups.

Commenting on the transaction, Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM, said the acquisition of FedEx Supply Chain, together with the new commercial partnership with FedEx, represents a major milestone in the development of CEVA Logistics and the group's broader logistics expansion strategy in North America.

On the FedEx side, Raj Subramaniam, President and Chief Executive Officer, said the divestment of FedEx Supply Chain will allow the company to focus its resources on higher-value sectors, including healthcare, automotive, aerospace, and data centers.

Continuing CMA CGM's M&A-Driven Growth Strategy

The transaction is expected to close in 2026, subject to customary regulatory approvals. The planned ocean freight and air cargo cooperation agreements will be implemented in phases through 2028.

The acquisition marks another step in CMA CGM's long-term mergers and acquisitions (M&A) strategy.

Since acquiring CEVA Logistics in 2019, the group has consistently expanded its global logistics ecosystem through a series of major acquisitions.

In 2024, CMA CGM completed the USD 5.2 billion acquisition of Bolloré Logistics, the largest M&A transaction in the company's history since its founding in 1978. At the same time, CEVA successfully completed the integration of Ingram Micro's CLS business and GEFCO, while continuing to strengthen its regional presence through acquisitions such as Borusan Tedarik in Türkiye and Fattal, headquartered in Lebanon.

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Source: Phaata.com (According to Splash247)

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