Major takeover Danish DSV becomes a logistics giant with Schenker takeover
A big bang in the logistics sector: Deutsche Bahn is parting with its logistics division DB Schenker in a sensational deal. The buyer is no stranger to the Swiss logistics landscape.
DB Schenker is changing hands for 14.3 billion euros (around 13.5 billion Swiss francs) and is going to the Danish company DSV, as both parties announced on Friday. This transaction creates one of the largest logistics groups in the world.
According to DSV, the merged company will have an annual turnover of 293 billion Danish kroner (around 37 billion Swiss francs) and a global workforce of around 147,000 employees in over 90 countries.
With the takeover, the new DSV, which started operations in 1976 with just 10 trucks, also overtakes its Swiss competitor Kühne+Nagel. The company from Schindellegi in the canton of Schwyz achieved net sales of 23.8 billion Swiss francs in 2023 with a workforce of 81,000 employees.
Completion expected in 2025
The Schenker transaction is expected to be completed in the course of next year. It requires the approval of the railroad supervisory board and the German government. Commitments to protect jobs also apply until 2027. Schenker employees recently demonstrated in several cities to save their jobs.
As is well known, Deutsche Bahn has been struggling with problems for some time and now has to sell off its silverware. CEO Richard Lutz explained the reasons for the sale, saying that the company now wanted to focus its business on rail infrastructure in Germany for the common good and climate-friendly passenger and freight transport in Germany and Europe. "At the same time, the reduction in debt will make a substantial contribution to the financial sustainability of the Group."
Reducing debt
DSV CEO Jens Lund said: "We have a clear plan for how we want to become the world's leading transport and logistics company together." As the new owner of Schenker, the company plans to invest around one billion euros in Germany over the next three to five years. This should also create jobs in Germany.
The Schenker takeover by DSV had become apparent in recent days. DSV and the financial investor CVC were reportedly the last remaining interested parties in the bidding war.
DSV took over Swiss Panalpina in 2019
Danish logistics company DSV is known in the industry for its appetite for takeovers. In recent years, the Group has significantly expanded its position on the global logistics market through several strategic acquisitions.
One focus in the past was on Switzerland. In 2018, DSV initially attempted to take over Zug-based Ceva Logistics. However, this attempt failed, as Ceva was ultimately taken over by the French shipping company CMA CGM.
Just one year later, in 2019, DSV pulled off a major coup in Switzerland: the takeover of Basel-based Panalpina. The company, originally founded as a Rhine shipping company, was one of the leading logistics providers in Switzerland at the time.
The Panalpina takeover was the largest transaction in DSV's history up to that point. Compared to the Schenker purchase, however, it was a real bargain. The total value of the transaction amounted to "only" 4.6 billion Swiss francs. By comparison, the 14.3 billion euros for Schenker is around 13.5 billion francs at the current exchange rate.
