FedEx to spin-off freight business

FedEx has said it will spin off its freight business to a new public company as it aims to strengthen its business amid weak demand.

The package delivery group, seen as a beacon of global economic growth due to the wide range of products it delivers, said it expected the separation to allow for more “tailored operational performance” and “tailored investment and capital allocation strategies” to serve the “developing”. needs” less than truckload (LTL) markets that transport products or cargo weighing more than 150 pounds.

“This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market,” said FedEx Chairman and CEO Raj Subramaniam. to create even greater value.”

FedEx shares rose 10.2 percent in New York trading.