CMA CGM eyes FedEx Supply Chain buy for $1.4 billion

CMA CGM is nearing an agreement to buy FedEx's third-party logistics arm for $1.4 billion in cash, a move that would deepen the French carrier's presence in the US supply chain, the Financial Times reported, citing people familiar with the matter. The report said talks were at an advanced stage, with a deal potentially closing as early as today (1 July), though the sources cautioned negotiations could still collapse.

The transaction would mark the latest acquisition-led push by CMA CGM chief executive Rodolphe Saadé to diversify the group beyond container shipping into logistics, air freight and media. Saadé has made US expansion a priority for the world's third-largest container line, having pledged a $20 billion investment over four years during an Oval Office meeting with President Donald Trump last year.

Alongside the acquisition, the two companies are expected to announce freight-forwarding partnerships that pair FedEx's air cargo network with CMA CGM's shipping scale, according to the FT's sources, though details were still being worked out.

For FedEx, offloading the unit would let it concentrate on its core air-ground delivery business, following last month's spin-off of FedEx Freight as a standalone public company.

FedEx Supply Chain traces its origins to FedEx's $1.4 billion acquisition of Genco Distribution System, completed in January 2015. The deal, first announced in December 2014, brought one of North America's largest third-party logistics providers into the FedEx fold, then led by Genco CEO Todd R. Peters and folded into the FedEx Ground reporting segment.

Earlier this year, the French shipping giant partnered with investment firm Stonepeak to establish a US-based port venture, United Ports, valued at approximately $10 billion. Under the agreement, CMA CGM will hold a 75% stake, while Stonepeak will invest $2.5 billion for a 25% share. Despite the equity split, CMA CGM will retain full operational control of the venture.

United Ports will cover 10 container terminals worldwide. Among them is the Nhava Sheva Free Port Terminal, one of the five container terminals, operating at Jawaharlal Nehru Port near Mumbai. The terminal is operated jointly by J M Baxi Ports & Logistics and CMA Terminals Holding. With a capacity of 1.8 million TEUs, Nhava Sheva Free Port Terminal is the only terminal at JN Port permitted to set market-driven rates, offering pricing flexibility in India’s busiest container gateway. Acquired in 2022 under a 30-year concession, Nhava Sheva Free Port Terminal’s inclusion highlights India’s growing role in global trade networks.

FedEx Supply Chain operates as a comprehensive third-party logistics provider, running more than 130 distribution centres spanning over 40 million square feet of managed space. Its fulfilment network reaches 96% of the US population within two days, supported by cloud-based platforms and autonomous warehouse robotics.

The unit's transportation management services cover air, ocean and ground freight forwarding, customs brokerage and analytics-driven visibility. It is also a major player in reverse logistics, handling returns through QR code-based processes alongside repair, refurbishment and recycling services. Additional offerings include kitting, packaging, labelling and contract manufacturing; capabilities aimed at helping retailers and other businesses scale efficiently while building more resilient supply chains.