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FedEx Corp. announced plans to separate its FedEx Freight unit, forming two publicly traded companies. This decision follows a comprehensive assessment by the company's Board of Directors. The separation is expected to be completed within 18 months and aims to benefit stockholders in a tax-efficient manner.
The move will allow both FedEx and FedEx Freight to focus on their respective growth strategies while maintaining cooperation on key initiatives. Customers are assured of continued service quality. Raj Subramaniam, FedEx Corp.'s president and CEO, stated, "This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market."
R. Brad Martin, vice chairman of the Board, emphasized confidence in the decision's potential for growth and value creation: “Building upon that powerful foundation, and following a careful assessment of our portfolio, the FedEx Corporation Board is confident that a separation of FedEx Freight will drive continued growth and value creation.”
