FedEx Freight Spinoff Gets Board Green Light, June 1 Separation Confirmed

Key Details FedEx's board has officially approved the spinoff of FedEx Freight, the nation's largest LTL carrier, with separation expected by June 1. Shareholders will receive one share of the new standalone company for every two FedEx shares held, with FedEx retaining a 19.9% stake to be divested within 24 months. FedEx Freight will begin trading on the NYSE under ticker symbol FDXF on June 1. What's Involved The distribution is expected to be tax-free for U.S. federal income tax purposes. FedEx Freight operates 365 terminals with 26,000 doors, manages 30,000 vehicles including 17,000 tractors, and employs 40,000 workers. The company generates approximately $9 billion in annual revenue. Why It Matters The separation allows FedEx Freight to operate independently and gives investors targeted exposure to the LTL market. Meanwhile, the legacy FedEx can focus on its transformation strategy for express and ground networks. By splitting operations, both companies aim to build on their respective industry leadership positions and create shareholder value more effectively.