The deal would nearly triple the size of CEVA Logistics' North American contract logistics operations and includes multiyear air and ocean freight agreements
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FedEx $FDX agreed to sell FedEx Supply Chain, its third-party logistics subsidiary, to French shipping company CMA CGM Group for an enterprise value of $1.4 billion, the companies said Wednesday. The deal is expected to close later in 2026, subject to regulatory approvals.
FedEx Supply Chain manages warehousing, distribution, fulfillment, and transportation for clients. CMA CGM will fold the business into CEVA Logistics, its existing logistics subsidiary, which the acquisition would nearly triple in size across North America. Across North America, the merged footprint would encompass more than 240 locations — including approximately 150 warehouses — and bring together a workforce of around 20,000 people, the companies said.
Alongside the acquisition, FedEx and CMA CGM said they plan to enter multiyear commercial agreements covering air and ocean freight. Under the commercial agreements, FedEx would designate CMA CGM as a preferred — though not exclusive — ocean carrier, while the pair would jointly pursue certain air cargo opportunities. Implementation of the freight agreements is scheduled to roll out on a staggered timeline, completing by 2028.
"By streamlining our portfolio, FedEx is better positioned to execute our long-term vision and continue to serve as the heartbeat of the industrial economy," FedEx President and CEO Raj Subramaniam said in a statement.
CMA CGM Chairman and CEO Rodolphe Saadé called the deal "a major step in the development of CEVA Logistics and our logistics activities in North America" in a statement.
The unit's origins trace back to a company called Genco, which FedEx purchased in 2015, according to The Wall Street Journal.
The sale continues FedEx's push to focus on its core parcel delivery operations. To sharpen that focus, FedEx has merged its ground and air delivery networks and pursued an aggressive cost-reduction program. On June 1, FedEx completed the separation of its trucking division, FedEx Freight, listing it as a standalone publicly traded company; as part of the transaction, FedEx Freight paid a cash dividend of approximately $4.1 billion back to FedEx Corporation.
Headquartered in Marseille, CMA CGM ranks among the top three container carriers globally and has spent recent years diversifying well beyond ocean shipping, building out positions in logistics services, port infrastructure, air freight, and media. At a White House event last year, Saadé announced a commitment to channel $20 billion into American maritime infrastructure, logistics networks, and terminal development over a four-year period, Bloomberg reported.
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