French shipping giant to buy FedEx supply chain

French shipping and logistics group CMA CGM has agreed to acquire FedEx Supply Chain, the third-party logistics business of FedEx, in a deal with an enterprise value of $1.4 billion, the company announced.

The acquisition is expected to be completed later this year and will significantly expand CMA CGM's logistics footprint in North America through its subsidiary, CEVA Logistics, Reuters reports.

Following the transaction, CEVA Logistics will operate approximately 150 warehouses and employ around 20,000 people in its North American contract logistics business.

In a statement, CMA CGM said the companies also intend to establish long-term commercial partnerships after the acquisition. Under the planned arrangements, CMA CGM will become FedEx's preferred ocean freight carrier, while the two companies will also collaborate in the air cargo sector.

The acquisition forms part of CMA CGM's broader strategy to strengthen its position in the global logistics industry and expand its presence in the United States.

Last year, the company announced plans to invest $20 billion in the United States over four years, a move that received praise from US President Donald Trump, whose administration has made the revitalization of the US shipping industry a key policy priority.

In recent years, CMA CGM has also accelerated its diversification beyond ocean shipping by expanding into logistics, port terminal operations, and other non-shipping businesses to reduce its exposure to fluctuations in the maritime freight market.

For its part, FedEx has been streamlining its operations to focus on its core parcel delivery business. Earlier this month, the company completed the spin-off of its trucking division, FedEx Freight.

By Vafa Guliyeva