French shipping company CMA CGM Group to buy FedEx’ logistics arm for $1.4B
Summary
French shipping company CMA CGM Group will buy FedEx Supply Chain, FedEx's logistics division, for $1.4 billion. This purchase will expand CMA CGM’s logistics business in the U.S. and is part of a larger plan to invest $20 billion in American logistics by 2025.Key Facts
- CMA CGM Group is a French container shipping company.
- It will buy FedEx Supply Chain, FedEx’s third-party logistics unit, for $1.4 billion.
- This acquisition will triple the size of CMA CGM’s logistics branch, CEVA Logistics.
- CMA CGM plans to invest $20 billion in U.S. warehousing, air cargo, and logistics over four years starting in 2025.
- The companies plan to make multi-year agreements for air and ocean freight services.
- FedEx is focusing more on its delivery business, especially in healthcare, automotive, aerospace, and data centers.
- FedEx recently completed the spinoff of FedEx Freight on June 1.
- The deal is expected to finish later in 2024 after regulatory approval, with air and ocean freight agreements finalized between 2026 and 2028.
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