CMA CGM to Buy FedEx Supply Chain for $1.4B
French shipping giant CMA CGM has agreed to acquire FedEx Supply Chain for $1.4 billion, expanding its logistics and freight services beyond container shipping.
Background
- CMA CGM is a French shipping giant, one of the world's largest container shipping companies, best known for its container ships that carry goods across oceans. It is controlled by the billionaire Saadé family.
- FedEx Supply Chain is the logistics arm of FedEx Corp. that handles warehousing, fulfillment, and distribution for other companies — not to be confused with FedEx's core express delivery business (the familiar overnight shipping).
- The $1.4 billion deal reflects a trend where ocean carriers are buying up land-based logistics companies to control the entire journey of a product, from factory to doorstep. CMA CGM has been aggressively expanding beyond just shipping, having bought logistics and port terminal assets recently.
- For FedEx, the sale lets it shed a lower-margin business and focus on its core package delivery network. The deal notably does not include FedEx's main express operations.