French container shipping group CMA CGM is reportedly in advanced negotiations to purchase FedEx's third-party logistics unit, FedEx Supply Chain, for approximately $1.4 billion in cash. Sources familiar with the matter indicate that a deal could be finalized as early as this Wednesday. This move represents a strategic expansion for CMA CGM into logistics, a sector where it has been actively diversifying through acquisitions in recent years.
For FedEx, the sale of its logistics division would enable the company to streamline its operations and allocate capital more effectively towards its primary air and ground delivery network. FedEx Supply Chain specializes in services such as order fulfillment and product returns, catering to major retailers.
This potential acquisition follows FedEx's recent spin-off of its trucking segment, FedEx Freight, just last month. The company's focus shift comes amidst evolving market dynamics, including weakened demand for delivery services due to global tariffs and changes in U.S. trade policies affecting low-value e-commerce shipments from regions like China. The $1.4 billion valuation underscores the ongoing consolidation within the logistics industry as companies strive to enhance service offerings and operational efficiencies.
