CMA CGM nears $1.4bn deal for FedEx logistics unit

CMA CGM is in advanced talks to buy FedEx Supply Chain for about $1.4 billion in cash, according to the Financial Times, in a deal that would deepen the French shipping group’s push into U.S. logistics.

The report, published on July 1, said the transaction could be announced as soon as Wednesday, though talks were still ongoing and neither company had immediately commented.

FedEx Supply Chain is FedEx’s third-party logistics business. The unit traces its roots to Genco Distribution System, which FedEx bought in 2015 for $1.4 billion and later rebranded.

What is being sold

The business at the center of the talks sits outside FedEx’s core parcel delivery network. It provides third-party logistics services and reverse-logistics operations, making it a different kind of asset from the company’s air and ground delivery franchise.

The reported price would roughly match what FedEx paid when it acquired Genco, underscoring how the unit has remained strategically significant even as FedEx now looks to simplify its portfolio.

Why CMA CGM wants it

For CMA CGM, the purchase would extend a wider expansion beyond ocean shipping and into land-based logistics, air freight and infrastructure. The company has been building a larger U.S. footprint, including through a port venture with Stonepeak reported earlier this year.

Buying FedEx Supply Chain would give CMA CGM a stronger position inside U.S. supply-chain operations and broaden its diversification beyond pure container shipping.

Why FedEx may sell now

The timing also fits FedEx’s effort to narrow its focus around its core air-ground network. Last month, FedEx completed the spin-off of FedEx Freight, another step in a broader restructuring of its business portfolio.

Selling FedEx Supply Chain would continue that refocusing by shedding a logistics arm that sits outside the company’s main delivery operations.

What else may be included

The Financial Times said the companies may also announce freight-forwarding partnerships alongside any sale, although those details were still being finalized.

That leaves open whether the final package will be limited to the logistics unit alone or will include additional commercial arrangements between the two companies.

What happens next

For now, the transaction remains a report of advanced talks rather than a signed agreement. The main unanswered questions are whether the parties reach a definitive deal, what exactly is included, and whether any exclusions or conditions are attached.

Regulatory, labor and integration issues have not yet been publicly detailed. If the talks conclude, a formal announcement would likely clarify the structure, timing and any related partnerships.