economy and politics

DSV to become the world’s largest logistics company by acquiring DB Schenker

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DSV has closed what will become the largest purchase in the logistics sector after the acquisition of DB Schenker.

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The Danish company DSV has reached an agreement to buy Schenker, the logistics unit of the German state railways Deutsche Bahn (DB). The agreement, signed on Friday, values ​​Schenker at 14.3 billion euroswith 11.3 billion capital.

Friday’s announcement It represents the largest sale in DB’s history and will make DSV the largest logistics company in the world. DSV said it will finance the purchase through a share sale of up to €5 billion and debt financing. “The acquisition of Schenker is a transformative transaction for DSV,” the Danish company said in a statement on Friday.

“Together, DSV and Schenker will have combined revenues of DKK 293 billion… and a combined workforce of around 147,000 employees in more than 90 countries,” the statement continued. That is to say, combined revenues of around €39.26 billion.

Deutsche Bahn closes the largest sale in its history

Richard Lutz, CEO of Deutsche Bahn, added: “It has been important for us to find a strong partner for Schenker and a long-term home for the company’s employees.” He noted that the sale provides DB’s logistics subsidiary with “clear growth prospects.”

DB wants to sell Schenker, its most profitable division, to unlock investments for its domestic passenger business and reduce its debt. The buyer’s choice, however, will disappoint some.

The venture capital company CVC Capital Partners was also bidding for Schenker, proposing that DB retain a 24.9% stake. Although CVC’s offer was supposedly lower, the powerful Verdi union supported this offer, believing it would result in fewer job cuts.

DSV CFO Michael Ebbe told Reuters he planned to cut between 1,600 and 1,900 positions from Schenker’s 15,000 German employees.

Ebbe stressed, however, that The merged company will increase the number of employees over a period of five yearsso that the German workforce exceeds current levels. According to Ebbe, DSV will also allocate an additional €10 million in compensation to appease the unions.

It is expected that The agreement will close in the second quarter of 2025subject to approval by regulatory authorities. The supervisory board of Deutsche Bahn and the German Ministry of Transport must also give the green light to the acquisitionexpectedly in the coming weeks.

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