CMA CGM finalizes $1.4B acquisition of FedEx Supply Chain

French shipping conglomerate CMA CGM Group finalized the acquisition of FedEx Supply Chain for $1.4 billion, a move that significantly expands Ceva Logistics's contract logistics operations in North America. This acquisition is part of CMA CGM's strategy to become a comprehensive logistics provider, offering end-to-end services from freight transportation to final-mile delivery, with its own container vessels, port terminals, and a cargo airline.

Patrick Moebel, previously head of FedEx Logistics, was hired by CMA CGM as CEO of Ceva Logistics. The deal was announced on July 1, and CMA CGM committed to becoming a preferred ocean carrier for FedEx over several years. They also plan to collaborate on air cargo capacity on key strategic routes, such as Asia-Europe. FedEx operates the world's largest cargo airline.

The acquisition triples Ceva Logistics's North American warehouse footprint, adding around 34 million square feet and 130 customers. The combined business will operate about 150 warehouses, expanding Ceva's presence in North America to over 240 locations and doubling its workforce to 20,000 people. Many of FedEx Supply Chain's facilities are technologically advanced, featuring automation and robotics.

Ceva will gain expertise in healthcare, technology, consumer, and retail sectors, enhancing its ability to manage complex, end-to-end supply chains across the U.S. and Canada. FedEx Supply Chain makes up less than 2% of FedEx's consolidated annual revenue, and FedEx will now focus on its freight transportation and parcel delivery services.