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FedEx to Sell Supply Chain Unit to France's CMA CGM in $1.4 Billion Deal

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FedEx to Sell Supply Chain Unit to France's CMA CGM in $1.4 Billion Deal

FedEx (FDX) has agreed to sell its supply chain subsidiary to French shipping and logistics firm CMA CGM in a roughly $1.4 billion deal, as the parcel delivery giant continues to streamline its portfolio.

FedEx Supply Chain specializes in product lifecycle logistics for the technology, retail, consumer and healthcare industries, according to FedEx's 2025 annual report.

The deal allows FedEx to focus more on high-value sectors such as healthcare, automotive, aerospace and data centers, it said Wednesday. The company recently completed the spin-off of its freight business into an independent public company, called FedEx Freight (FDXF).

"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," FedEx Chief Executive Raj Subramaniam said in a statement Wednesday.

The company's shares were up 1% in afternoon trade, bringing its year-to-date gains to nearly 36%.

The transaction is projected to nearly triple the size of the North American contract logistics operations of CMA CGM unit CEVA Logistics. The merged entity is expected to operate about 150 warehouses with 20,000 employees, according to the statement.

Following the transaction, which is expected to close later this year, FedEx and CMA CGM aim to enter into multiyear commercial agreements related to air and ocean freight. The agreements are expected to begin in phases between now and 2028.

CMA CGM is anticipated to provide FedEx ocean transport and carrier services as part of a non-exclusive deal, while the companies will work together on certain air cargo capacity solutions, they said.

Last week, UBS Securities said FedEx may face near-term pressure from the freight business spin-off and a transition to calendar-year reporting, but it remains positioned for multi-year earnings growth driven by margin expansion and pricing strength.

Price: $316.11, Change: $+2.98, Percent Change: +0.95%

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