CMA CGM set to acquire FedEx logistics business for $1.4 billion

French shipping conglomerate CMA CGM is in advanced negotiations to acquire the third-party logistics arm of US-based FedEx for $1.4 billion, according to reports from Finimize. The deal would mark one of the largest moves yet by CMA CGM into land-based supply chain services as it seeks to broaden its portfolio beyond container shipping.

Strategic expansion into logistics

CMA CGM, which ranks among the world's largest container carriers, has been steadily building out its end-to-end logistics capabilities in recent years. Acquiring FedEx's freight brokerage and supply chain solutions unit would give the Marseille-based group deeper access to North American customers and a more diversified revenue base, reducing its reliance on volatile ocean freight rates.

FedEx has been reshaping its business to focus on its core parcel and express delivery operations. Divesting the logistics segment would streamline the company while providing capital to invest in network modernisation and cost-cutting initiatives.

What the deal includes

The transaction under discussion would cover FedEx's freight forwarding, customs brokerage and contract logistics businesses. Industry analysts view the unit as a complementary fit for CMA CGM's existing operations, which already include CEVA Logistics, acquired in 2019.

• Acquisition price reported at $1.4 billion
• Covers FedEx's third-party logistics, freight forwarding and brokerage services
• Would strengthen CMA CGM's presence in the North American market

Both companies have declined to comment publicly on the specifics of the discussions. The agreement, if finalised, would represent a significant consolidation in the global logistics sector and underscore how ocean carriers are increasingly competing with traditional freight forwarders for end-to-end supply chain contracts. For more on the broader shipping industry, see this report on GPA Logistics' revenue growth following financial audit optimisation, and read additional coverage of the CMA CGM agreement to acquire FedEx's third-party logistics unit for $1.4 billion and the related CMA CGM-FedEx $1.4 billion acquisition.