CMA CGM Nears $1.4 Billion Deal to Acquire FedEx Supply Chain Business

BY COMFORT OGBONNA

French shipping and logistics giant CMA CGM is reportedly close to reaching an agreement to acquire FedEx’s third-party logistics division, FedEx Supply Chain, in a deal valued at approximately $1.4 billion in cash.

According to people familiar with the negotiations, discussions between the two companies are in the final stages, and an agreement could be announced as early as Wednesday if negotiations conclude successfully. Neither company has publicly confirmed the reported deal, and both CMA CGM and FedEx have yet to comment on the ongoing talks.

If completed, the acquisition would represent another major step in CMA CGM’s strategy to expand beyond its traditional container shipping operations and strengthen its presence in global logistics, warehousing, and air freight services. The company has invested heavily in recent years to build an integrated transportation network capable of handling cargo across sea, air, and land, positioning itself as a comprehensive logistics provider.

For FedEx, the potential sale aligns with its broader plan to streamline operations and concentrate resources on its core package delivery business. By divesting its third-party logistics arm, the company would sharpen its focus on its extensive air and ground transportation network, which remains the foundation of its global operations.

FedEx Supply Chain provides a wide range of logistics services, including warehousing, inventory management, order fulfillment, reverse logistics, and product returns for major retailers and manufacturers. The business plays an important role in helping companies manage increasingly complex supply chains while meeting growing customer expectations for faster and more efficient deliveries.

The reported sale follows another significant restructuring move by FedEx. Just a month ago, the company completed the spin-off of its less-than-truckload freight division, FedEx Freight, creating a separate publicly traded company. That transaction was designed to allow FedEx to devote greater attention to its parcel delivery operations while giving the freight business more flexibility to pursue its own growth strategy.

The logistics industry has faced mounting challenges over the past year as slowing global trade and changing economic conditions have reduced shipping demand. Delivery companies have also been adapting to evolving trade policies introduced by the administration of U.S. President Donald Trump, which have reshaped cross-border commerce and affected shipping volumes.

Among the most significant policy changes has been the elimination of the U.S. duty-free “de minimis” exemption for many low-value e-commerce shipments linked to China. The change has affected high-volume online retailers such as Shein and Temu, contributing to lower international shipment volumes and increasing pressure on logistics providers that depend on cross-border e-commerce.

Despite these headwinds, mergers and acquisitions continue to reshape the transportation and logistics sector as companies seek greater scale, diversify their services, and improve efficiency in an increasingly competitive market. If finalized, the acquisition of FedEx Supply Chain would further strengthen CMA CGM’s position as one of the world’s leading integrated logistics providers while allowing FedEx to continue its transformation into a more focused delivery company.