Global logistics business CMA CGM Group has announced it will acquire the FedEX Supply Chain at an enterprise value of USD1.4 billion, as it seeks to strengthen its North American presence in the sector.

FedEx says the deal, expected to close this year subject to regulatory approvals, will almost triple the size of the North America logistics operations of CEVA Logistics, a subsidiary of the CMA CGM Group.

“By integrating FedEx Supply Chain’s assets and nearly 10,000 team members, CEVA Logistics will become a leading contract logistics provider in North America,” a statement from FedEx reads. “The combined entity would operate approximately 150 warehouses, expanding CEVA’s overall presence in North America to a combined workforce of 20,000 people located at more than 240 locations.”

The companies will also work together on select air cargo capacity solutions to enhance their respective global networks in the interest of higher aircraft utilisation and flexible long-haul capacity.

Rodolphe Saadé, chairman and CEO of the CMA CGM Group, says: “The acquisition and partnership with FedEx represent a major step in the development of CEVA Logistics and our logistics activities in North America”. 

“We are strengthening our ability to provide customers with integrated supply chain solutions. These deals also reinforce our long-term commitment to investing in the United States and supporting the resilience and efficiency of its supply chain.”

FedEx says the deal allows it to focus on high-value verticals, including healthcare, automotive, aerospace and data centres.