French shipping giant CMA CGM has agreed to acquire FedEx Supply Chain in a deal valued at $1.4 billion, including debt. The transaction, expected to close later this year pending regulatory approvals, aims to strengthen CMA CGM’s logistics footprint in North America and expand its service offerings through its subsidiary CEVA Logistics.

Under the terms of the agreement, CMA CGM and FedEx will enter into multiyear commercial partnerships that cover air and ocean freight services. CMA CGM will provide ocean transport and carrier services to FedEx through a nonexclusive arrangement, while both companies plan to collaborate on select air-cargo capacity solutions. These commercial agreements are set to be implemented gradually, with phases rolling out through 2028.

The acquisition will integrate FedEx Supply Chain—formerly known as Genco, which FedEx purchased in 2015—into CMA CGM’s operations. FedEx Supply Chain specializes in fulfillment, distribution, warehousing, and transportation management. Following the deal, the combined operations are expected to manage approximately 150 warehouses across North America. The expanded CEVA Logistics network will employ around 20,000 people across more than 240 locations.

This move aligns with CMA CGM’s broader strategy to enhance its logistics and supply chain capabilities beyond traditional ocean freight services, positioning the group for increased competitiveness in the expanding North American market. FedEx, meanwhile, will maintain a collaborative relationship with CMA CGM to ensure continuity in supply chain solutions and access to air and ocean freight capacity as part of the ongoing partnerships established through this transaction.