FedEx Corp. (NYSE:FDX) traded modestly higher on Monday after finalizing the separation of its freight division, creating a new standalone publicly listed company, FedEx Freight Holding Company, Inc. (NYSE:FDXF).
The transaction marks a significant restructuring milestone for the logistics giant, with both businesses now operating independently and pursuing their own strategic priorities.
Shareholders Receive Stakes in Newly Listed FedEx Freight
The separation was completed through the distribution of 80.1% of FedEx Freight’s outstanding shares to existing FedEx shareholders on a pro rata basis.
Under the terms of the deal, investors received one share of FedEx Freight common stock for every two shares of FedEx common stock owned at the close of trading on May 15, 2026.
FedEx Freight officially began regular trading on the New York Stock Exchange on Monday under the ticker symbol “FDXF.”
FedEx Retains Minority Interest
Although the spin-off has been completed, FedEx continues to hold a 19.9% stake in the newly independent freight company.
The company said it intends to dispose of the remaining shares within the next 24 months. The stake may be used to repay certain FedEx debt through exchanges with creditors or distributed to shareholders through dividends or share exchange transactions.
Independent Freight Company Targets North American LTL Market
As a standalone business, FedEx Freight will focus exclusively on the North American less-than-truckload (LTL) transportation market.
Management believes the separation will allow the freight operation to pursue growth opportunities and capital allocation strategies tailored specifically to the LTL sector.
Meanwhile, FedEx will continue operating its global transportation, logistics and delivery network and remain listed on the NYSE under the ticker symbol “FDX.”
Management Highlights Strategic Milestone
FedEx President and Chief Executive Officer Raj Subramaniam described the completion of the spin-off as a major step forward for both organizations.
“The successful separation of FedEx Freight is a pivotal milestone, positioning two independent companies to lead their respective industries and create long-term value for their stockholders,” said Raj Subramaniam, FedEx president and chief executive officer.
The company expects the separation to provide greater strategic flexibility, clearer operational focus and enhanced opportunities for value creation as each business pursues its own long-term objectives.