Danish logistics firm DSV has signed a deal to acquire Schenker, the logistics unit of German state railway Deutsche Bahn (DB), for €14.3bn. This marks the largest sale in DB’s history and will make DSV the world’s largest logistics company. The acquisition will be financed through a combination of a share sale and debt financing, totaling up to €5bn. The merged company will have a combined revenue of around €39.26bn and a workforce of approximately 147,000 employees across more than 90 countries.
Deutsche Bahn CEO, Richard Lutz, emphasized the importance of finding a strong partner for Schenker and a long-term home for its employees. The sale of Schenker will allow DB to unlock investment for its domestic passenger business and reduce its debt, while providing clear growth prospects for its profitable logistics division. The choice of DSV as the buyer, however, may be disappointing to some, as private equity firm CVC Capital Partners was also bidding for Schenker and proposed a deal that would allow DB to retain a 24.9% stake in the company. The Verdi union supported the bid from CVC, believing it would lead to fewer job cuts.
DSV’s Chief Financial Officer, Michael Ebbe, revealed plans to reduce up to 1,900 positions from Schenker’s German workforce of 15,000. Despite this, Ebbe assured that the merged company will gradually increase employee numbers over a five-year period, surpassing the current levels. DSV is also committed to providing an additional €10m in compensation to address union concerns. The deal is expected to be completed in the second quarter of 2025, pending regulatory approval from Deutsche Bahn’s supervisory board and the German transport ministry, which is anticipated in the coming weeks.
The acquisition of Schenker by DSV is seen as a transformative transaction that will significantly expand the Danish company’s global presence and increase its market share. The combined resources and expertise of DSV and Schenker are expected to create synergies and drive further growth in the logistics industry. The deal represents a strategic move for Deutsche Bahn to reallocate resources and focus on its core passenger business, while positioning Schenker for future success under DSV’s ownership. The approval process for the acquisition is on track, and both parties are working towards a smooth transition and integration of Schenker into DSV’s operations.
As the world’s largest logistics company upon completion of the acquisition, DSV will have a strong competitive advantage in the global market and be well-positioned to capitalize on new opportunities and challenges. The commitment to retaining and growing employee numbers in Germany demonstrates DSV’s dedication to responsible business practices and long-term sustainability. The successful acquisition of Schenker will further enhance DSV’s reputation as a leader in the logistics industry and strengthen its position as a key player in the global supply chain. Ultimately, the deal between DSV and Deutsche Bahn signifies a significant milestone in the evolution and consolidation of the logistics sector, paving the way for future growth and success for both companies.
