Denmark's DSV Secures €14 Billion Acquisition of Deutsche Bahn's Schenker, Sources Report
2 months ago
Denmark's DSV Secures €14 Billion Acquisition of Deutsche Bahn's Schenker, Sources Report
Danish logistics giant DSV has reportedly secured the acquisition of Schenker, the rail logistics division of Germany’s state-owned Deutsche Bahn, in a deal valued at approximately €14 billion ($15.43 billion), according to sources within Deutsche Bahn and the German government.
A preliminary agreement is expected to be signed in the coming days, pending approval from Deutsche Bahn’s supervisory board, which consists of representatives from the government, parliament, and labor unions.
CVC Capital Partners was the other finalist in the bidding war for Schenker, which employs over 70,000 people across 1,850 locations globally, including around 15,000 in Germany. Despite DSV's slightly higher bid, union representatives on the board expressed concerns about potential job losses under DSV’s ownership. However, the German government, as the majority shareholder, supported DSV's offer.
Neither Deutsche Bahn nor DSV commented on the ongoing deal, dismissing it as market speculation.
If finalized, the acquisition would mark the largest-ever deal for a Danish company. It would elevate DSV beyond Swiss competitor Kuehne + Nagel in both volume and revenue, making it the largest freight forwarder in the world, according to brokerage firm Sydbank.
Deutsche Bahn’s decision to sell Schenker, its most profitable subsidiary, is driven by the need to fund investments in its struggling domestic passenger rail services and reduce its €30 billion debt burden.
This acquisition follows DSV’s strategy of aggressive expansion through high-profile acquisitions, including U.S.-based UTi, Swiss firm Panalpina, and Kuwaiti Global Integrated Logistics (GIL), with a particular focus on bolstering its air and sea freight operations.
Source: Reuters