The CMA CGM Group has decided to buy FedEx Supply Chain from FedEx for $1.4 billion. This move will significantly grow its contract logistics business in North America and create new long-term partnerships for ocean and air cargo between the two companies.
The deal is set to close in 2026, pending regulatory approvals, and will nearly triple the size of CEVA Logistics, CMA CGM's logistics subsidiary, in North America.
Once the acquisition is complete, the combined company will manage around 150 warehouses under CEVA in North America, boosting its regional presence to over 240 locations and a workforce of about 20,000 employees. FedEx Supply Chain employs nearly 10,000 people who will transition to CEVA as part of the deal.
This agreement is another significant investment by CMA CGM in the U.S., where the French shipping and logistics firm has been expanding its services beyond container shipping through various acquisitions and investments in ports, air cargo, warehousing, and comprehensive logistics solutions.
Alongside this acquisition, CMA CGM and FedEx plan to establish multi-year commercial agreements for both ocean shipping and air cargo.
Under these agreements, CMA CGM will serve as a preferred, non-exclusive ocean carrier for FedEx, providing transportation services across its global network. The companies also aim to work together on specific air cargo solutions to enhance aircraft use and offer more flexibility for long-distance freight movements.
Rodolphe Saadé stated, “This acquisition and partnership with FedEx mark a significant step in enhancing CEVA Logistics and our logistics operations in North America. We are improving our capacity to deliver integrated supply chain solutions. These deals also underline our long-term commitment to investing in the U.S. and supporting its supply chain resilience and efficiency.”
For FedEx, selling this part of the business lets the company focus on more valuable logistics areas while still maintaining a commercial relationship with CMA CGM.
Raj Subramaniam commented, “This announcement allows FedEx to sharpen our focus on delivering our expertise in high-value sectors like healthcare, automotive, aerospace, and data centers. By streamlining our portfolio, we’re better equipped to pursue our long-term goals and remain a vital part of the industrial economy.”
The ocean freight and air cargo agreements are expected to be rolled out in phases between now and 2028.