The victory of DSV in the race for DB Schenker was already reported on Wednesday but is now officially confirmed by Deutsche Bahn itself. «The Management Board of Deutsche Bahn AG today signed an agreement for the sale of its logistics subsidiary DB Schenker to the Danish transport and logistics group DSV for an enterprise value (EV) of EUR 14.3 billion. Including expected interest income until completion, the total sales value amounts to EUR 14.8 billion,» underlined the German company.
«The acquisition of Schenker is a transformative transaction for DSV, creating a world-leading player within the global transport and logistics industry,» the Danish company commented in a statement.
It continued explaining that «with this acquisition, Germany will be a key market for DSV with a substantial impact on the future organisation. Various central functions will stay in Germany, including at the Schenker location in Essen. DSV expects to grow in Germany and plans EUR 1 billion investments in Germany in the next 3-5 years.»
More steps remain
The Danish company provided some insights into the remaining processes until the deal is fully sealed: «The deal is conditional on approvals by the Supervisory Board of Deutsche Bahn and by the German Federal Ministry for Digital and Transport, which are expected in the coming weeks.
In addition, the acquisition is conditional on obtaining customary regulatory clearances, which are expected to be secured in Q2 2025. DSV expects to finance the transaction through a combination of equity financing of around EUR 4-5 billion and debt financing.»
Last-minute battle for DB Schenker
In the days leading up to DSV coming out on top, only two contenders for the purchase remained. The Danes are leaving equity firm CVC behind them after both Maersk and Saudi shipping company Bahri dropped out earlier in the summer.
In the lead-up to the finalisation of the deal, both DSV and CVC sweetened their bids in an attempt to win over DB. The Danish logistics company indicated that it wants to invest around 1 billion euros in DB Schenker in the years following the takeover to boost profitability.
CVC, for its part, offered an additional payment of at least 1 billion euros to Deutsche Bahn in case of a future initial public offering (IPO) exit. That offer would have stood if the German government went along with one of two variants of CVC’s bid, in which the state would remain a minority stakeholder in DB Schenker, Reuters wrote.
Brokerage Sydbank projects that DSV will now become the largest freight forwarder in the world in terms of both volume and revenue writes Reuters.
