CMA CGM has completed its $1.4 billion acquisition of FedEx Supply Chain, the contract logistics arm of FedEx Corp, the French shipping group announced Thursday.

The deal roughly triples the North American warehouse footprint of CEVA Logistics, CMA CGM's logistics arm. It adds about 34 million sq ft of warehouse space and 130 customers to CEVA's network.

The combined business will operate about 150 warehouses, expanding CEVA's presence in North America to more than 240 locations. The acquisition doubles the workforce to 20,000 people.

What does the deal change for shippers?

The purchase significantly expands CEVA Logistics's contract logistics operations in North America. It forms part of CMA CGM's broader strategy of operating as an end-to-end logistics provider — spanning freight transportation from manufacturing origin, customs clearance, warehousing and final-mile delivery to stores and households.

That integrated offer leans on CMA CGM's own container vessels, port terminals and a cargo airline, alongside non-asset-based divisions that rely on third-party partners.

Many of the FedEx Supply Chain facilities are technologically advanced, featuring automation and robotics. CEVA will also gain sector expertise in healthcare, technology, consumer and retail, according to CMA CGM, enhancing its ability to manage complex, end-to-end supply chains across the United States and Canada.

Who is leading the integration?

CMA CGM hired Patrick Moebel as CEO of CEVA Logistics last summer. Moebel previously headed FedEx Logistics, FedEx's freight forwarding and customs clearance unit — giving the Marseille-based group an insider's knowledge of the business it has now bought.

What does FedEx get in return?

As promised when the deal was announced on July 1, CMA CGM will become a preferred ocean carrier for FedEx (NYSE: FDX) over several years. The two companies also plan to collaborate on air cargo capacity on key strategic routes, including Asia-Europe.

FedEx operates the largest cargo airline in the world. The collaboration is expected to improve aircraft utilization and provide greater flexibility on aircraft deployment on long-haul routes.

Why is FedEx selling?

FedEx Supply Chain accounts for less than 2% of FedEx's consolidated annual revenue, making it a small part of the parcel giant's business. With the sale closed, FedEx will concentrate on its core freight transportation and parcel delivery services.

For CMA CGM, the transaction deepens its push beyond ocean shipping into vertically integrated logistics, positioning CEVA to compete for larger North American contract logistics contracts. For FedEx, the preferred-carrier arrangement converts a divested unit into a guaranteed ocean freight relationship with one of the world's largest carriers — while freeing capital and management focus for its parcel network.

The completed deal signals that CMA CGM's acquisition-driven expansion into land-based logistics, begun with CEVA and accelerated under Moebel, will continue to reshape its balance between asset-heavy ocean transport and warehousing-led contract logistics.