DSV and CVC Battle for €14 Billion DB Schenker Acquisition
4 weeks ago
DSV and CVC Battle for €14 Billion DB Schenker Acquisition
DSV - Global Transport and Logistics has reportedly made a bid of approximately €14 billion for DB Schenker, according to Bloomberg, which cites anonymous sources. CVC Capital Partners, another major contender in the race to acquire the German freight forwarder, has also offered €14 billion and is open to increasing their bid.
Sources familiar with the matter indicate that both DSV and a private equity consortium led by CVC have submitted binding offers around the €14 billion mark for DB Schenker. This development narrows the field of potential buyers to just these two, down from an initial group of four bidders, according to Bloomberg.
The CVC-led group has also considered a higher bid, potentially reaching up to €16 billion, which could involve the German government reinvesting about €3 billion to secure a 25% stake in the company, the sources added.
A spokesperson for Deutsche Bahn told Air Cargo News that the sales process for DB Schenker remains confidential, and the company will not comment on bidders, discussions, or bid amounts. The spokesperson emphasized that the primary criterion for the sale is that it must be economically advantageous for Deutsche Bahn.
Deutsche Bahn initially announced the sale of DB Schenker in December 2023, as part of its strategy to reduce debt. In June, the company narrowed down potential buyers to four, with initial bids ranging between €14 billion and over €15 billion. However, in July, A.P. Moller-Maersk withdrew its bid, citing challenges in integrating DB Schenker into its operations, and Saudi shipping company Bahri also exited the bidding process.
Earlier this year, Deutsche Bahn required interested parties to demonstrate their expertise in logistics M&A deals of this scale and their financial capability. They also needed to articulate their interest in acquiring Schenker and provide initial insights into their strategic plans for the company. Although a complete sale is the preferred option, Deutsche Bahn has not ruled out the possibility of a partial sale.
Source: ShippingWatch, AirCargo News