The French CMA CGM Group has set its sights on North America: Federal Express’s logistics division is going to change hands for $1.4 billion.
According to statements from both companies, the takeover has already been agreed. CMA CGM will therefore acquire all the shares in FedEx Supply Chain, a subsidiary of Federal Express (FedEx), for a purchase price of $1.4 billion. The transaction is expected to be completed before the end of this year. The benefit for the French company would be enormous: the business of CMA CGM’s subsidiary, Ceva Logistics, would almost triple in the North American contract logistics segment.
CMA CGM has been active in the US supply chain for over 25 years. The acquisition of FedEx Supply Chain would significantly accelerate the company’s strategy of offering comprehensive end-to-end logistics solutions in North America. “By integrating FedEx Supply Chain’s assets and its approximately 10,000 employees, Ceva Logistics will emerge as a leading provider of contract logistics in North America,” the companies stated. “The merged company would operate around 150 warehouse sites and expand Ceva’s overall presence in North America to a workforce of 20,000 employees across more than 240 locations.”
Once the transaction is complete, CMA CGM and FedEx also plan to enter into multi-year commercial agreements for air and sea freight. CMA CGM is set to become FedEx’s preferred sea freight provider and will offer sea freight and transport services under a non-exclusive agreement. Furthermore, the companies will collaborate on a number of air freight projects to strengthen their respective global networks – with the aim of achieving higher aircraft utilisation and flexible long-haul capacity.
CMA CGM plans long-term presence in North America
“The acquisition and partnership with FedEx represent a significant step in the development of Ceva Logistics and our logistics activities in North America,” said Rodolphe Saadé, Chairman and CEO of the CMA CGM Group. “We are strengthening our ability to offer customers integrated supply chain solutions. These agreements also underline our long-term commitment to investing in the US and supporting the resilience and efficiency of the supply chain there.”
Raj Subramaniam, President and CEO of FedEx, added: “Today’s announcement enables FedEx to focus even more strongly on applying our unique expertise to high-growth sectors – including healthcare, the automotive industry, aerospace and data centres.” FedEx will be better positioned to support American industry through a more streamlined portfolio. “We look forward to leveraging the complementary partnership with global logistics solutions provider CMA CGM to shape the next chapter for FedEx Supply Chain and its employees.”
The acquisition is expected to be completed in 2026, subject to the usual regulatory approvals. The agreements for air and sea freight are set to come into effect in various phases up to 2028.
CMA CGM is currently on a veritable “shopping spree”: the group recently announced its intention to acquire Crystal Aero Solutions, a French air freight service provider, in order to strengthen its own Air Cargo division. It also plans to acquire the Lebanese Fattal Group to serve the African and Middle Eastern markets. (JW)
