CMA CGM Group has agreed to acquire FedEx Supply Chain for US$1.4 billion, a transaction that will dramatically strengthen the company’s logistics presence in North America through its subsidiary CEVA Logistics.
The acquisition covers FedEx Supply Chain, formerly known as GENCO, the third-party logistics provider acquired by FedEx in 2015 before being rebranded in 2017. Once the transaction receives regulatory approval and closes later this year, CEVA Logistics will integrate nearly 10,000 employees and 150 warehouses into its existing network.
The move will almost triple CEVA’s North American contract logistics operations, increasing its regional footprint to around 240 warehouses while doubling its workforce.
Alongside the acquisition, CMA CGM and FedEx have also signed a series of multi-year commercial agreements covering both ocean and air freight services. Under the new partnership, CMA CGM will become FedEx’s preferred ocean carrier for container shipping and carrier services through a non-exclusive arrangement that will be implemented progressively between now and 2028.
Rodolphe Saadé, Chairman and CEO of CMA CGM Group, described the agreement as another major milestone in the company’s logistics strategy.
“The acquisition and partnership with FedEx represent a major step in the development of CEVA Logistics and our logistics activities in North America. We are strengthening our ability to provide customers with integrated supply chain solutions,” he said.
The FedEx Supply Chain acquisition continues CMA CGM’s aggressive expansion in the logistics sector. In recent years, the group has completed several major deals, including the acquisition of Fagioli Group, the logistics division of Borusan, and the landmark €4.85 billion purchase of Bolloré Logistics.
Earlier this year, CMA CGM also announced plans to invest US$20 billion in the United States over the next four years, with spending focused on ports, shipping, air freight and logistics infrastructure as the group continues to strengthen its position across the North American supply chain.
