CMA CGM buys FedEx Supply Chain in $1.4bn US logistics push

French shipping and logistics group CMA CGM has agreed to buy FedEx Supply Chain in a $1.4bn deal, adding another large business to its CEVA Logistics arm. The purchase gives the Marseille-based company a much bigger contract logistics footprint in North America, a market it has been targeting as it expands beyond ocean shipping.

FedEx Supply Chain will be folded into CEVA, a move expected to almost triple CEVA's North American contract logistics operations. The combined business will run around 150 warehouses, taking CEVA's wider North American presence beyond 240 locations and about 20,000 staff. FedEx Supply Chain brings close to 10,000 employees and a warehouse and distribution network focused on contract logistics, fulfilment and supply chain management.

CMA CGM and FedEx also plan multi-year commercial agreements covering ocean and air freight. Under the planned ocean deal, CMA CGM will become a preferred but non-exclusive carrier for FedEx, and the two intend to cooperate on selected air cargo capacity to lift aircraft use and add flexible long-haul capacity.

Chairman and chief executive Rodolphe Saade said the acquisition and partnership marked a major step for CEVA and the group's North American logistics ambitions. FedEx chief executive Raj Subramaniam said the sale would let the US group sharpen its focus on higher-value sectors such as healthcare, automotive, aerospace and data centres.

The transaction is expected to close in 2026, subject to regulatory approvals, with the air and ocean agreements phased in through to 2028. It adds to a long run of dealmaking by CMA CGM, which bought CEVA in 2019 and has since used it to build a much larger logistics business, including the $5.2bn purchase of Bollore Logistics and the integration of GEFCO and other assets.