PARIS, July 1 (Reuters) – French shipping group CMA CGM has agreed to acquire FedEx’s third-party logistics business for an enterprise value of $1.4 billion, it said on Wednesday, as it seeks to expand its presence in the logistics sector and in the United States.
The deal is expected to close later this year and will mean CMA CGM, through its CEVA Logistics subsidiary, will have around 150 warehouses and 20,000 employees in contract logistics in North America.
Following the acquisition, the companies also plan to develop partnerships under which CMA CGM will be the preferred ocean carrier for FedEx and they will collaborate on air cargo, CMA CGM said in a statement.
CMA CGM last year announced plans to invest $20 billion in the United States over four years, winning plaudits from President Donald Trump who has made reviving the U.S. shipping sector a policy priority.
CMA CGM has also pursued diversification into logistics, port terminals and non-transport activities to offset volatility in ocean shipping.
FedEx, in a bid to focus on its delivery business, spun off its trucking unit, FedEx Freight FDXF.N, earlier this month.
CMA CGM’s acquisition of the third-party logistics business, known as FedEx Supply Chain, was reported earlier by the Financial Times.
(Reporting by Gus Trompiz;Editing by Emelia Sithole-Matarise)
