CMA CGM nears $1.4bn deal for FedEx logistics unit
French shipping group aims to expand in US and strengthen foothold in supply chain
French container shipping group CMA CGM is nearing a deal to buy FedEx’s third-party logistics business for $1.4bn in cash, further strengthening its foothold in the US supply chain.
Talks between the companies are at an advanced stage and a deal could come together as soon as Wednesday, according to people familiar with the matter. They cautioned that talks could still fall apart.
The potential deal would be the latest move by the Marseille-based company’s chief executive Rodolphe Saadé to expand through acquisitions and to diversify into logistics, air freight and media assets.
Saadé has also earmarked US growth as a priority for the world’s third-largest container line. He pledged in an Oval Office meeting with President Donald Trump last year to invest $20bn over four years, helping to revive the US maritime sector and create 10,000 jobs.
As part of the latest deal, the companies would also unveil partnerships in freight forwarding, using FedEx’s strength as an air freight carrier and CMA CGM’s prowess as a shipping behemoth, the people added. Details of the partnerships were still being finalised and could shift.
For FedEx, the sale would advance its efforts to refocus on its core air-ground delivery network after completing the spin-off of its FedEx Freight business as a standalone public company last month.
FedEx’s third-party logistics business, known as FedEx Supply Chain, which specialises in order fulfilment and product returns for major companies including retailers, traces its roots back to a 2015 takeover of Genco Distribution System that FedEx bought for $1.4bn.
CMA CGM has snapped up US ports across cities including Los Angeles and New York in recent years. The shipping group earlier this year created a $10bn joint venture with infrastructure investor Stonepeak in which it is a 75 per cent shareholder, doubling down on its longstanding commitment to the US.
Family-owned CMA CGM was built up by Lebanese businessman Jacques Saadé starting in the 1980s. His son Rodolphe took over in 2017.
Rodolphe Saadé is regarded as a canny dealmaker and negotiator who has placed big bets on acquisitions since reaping billions in profits during the Covid-19 pandemic.
Last year CMA CGM generated two-thirds of its $54.4bn in revenues from its shipping business, while the logistics unit brought in $18bn, a similar level as in 2024. Saadé also owns French media assets including BFM TV and La Tribune newspaper.
Similar to other shipping groups such as Maersk and MSC, CMA CGM has faced a challenging environment this year because of the disruption triggered by the US war with Iran and lower freight rates amid excess capacity.
In the first quarter, revenue at the shipping unit fell by 8.5 per cent year on year to $18bn, while adjusted earnings before interest, taxes and other charges fell 41 per cent to $1.5bn.
CMA CGM and FedEx did not immediately respond to requests for comment.