CMA CGM Group is set to acquire FedEx Supply Chain for an enterprise value of $1.4bn and the takeover will see the companies work together on air cargo capacity solutions.
The acquisition, expected to close this year, would nearly triple the size of the North American contract logistics operations of CEVA Logistics, a subsidiary of the CMA CGM Group.
Following the execution of this transaction, CMA CGM and FedEx also expect to enter into multi-year commercial agreements related to air and ocean freight.
The companies will work together on select air cargo capacity solutions to enhance their respective global networks in the interest of higher aircraft utilization and flexible long-haul capacity.
CMA CGM will also become a preferred ocean carrier for FedEx, offering ocean transport and carrier services under a non-exclusive agreement.
The air cargo and ocean freight agreements are expected to commence in different phases between now and 2028.
Rodolphe Saadé, chairman and chief executive of the CMA CGM Group, stated: “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. These deals also reinforce our long-term commitment to investing in the United States and supporting the resilience and efficiency of its supply chain.”
Raj Subramaniam, president and chief executive of FedEx, added: “Today’s announcement enables FedEx to further increase our focus on providing our unique expertise for high-value verticals, including healthcare, automotive, aerospace and data centers.
“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, delivering unmatched connectivity, reliability, and value to our customers globally.
“We look forward to leveraging our complementary relationship with global logistics solutions provider CMA CGM to support the next chapter for FedEx Supply Chain and its team members.”
The acquisition is subject to customary regulatory approvals.
Last month, the CMA CGM Group signed a preliminary agreement for the acquisition of Crystal Aero Solutions, which specialises in aircraft maintenance services for both cargo and passenger aircraft.
