DSV A/S has announced that it signed an agreement to takeover DB Schenker, a unit of Deutsche Bahn AG, for €14.3 billion (US$16 billion), creating the world's largest freight forwarder.
The Danish logistics company said it will finance the all-cash transaction over the next 12 months through a combination of share sales of up to €5 billion (US$5.5 billion) and debt financing.
DSV's acquisition of the German logistics giant from Deutsche Bahn marks one of the largest sales of a state-owned business in Germany in recent years.
"DSV is proud to announce that it has signed an agreement to acquire Schenker from Deutsche Bahn in a transaction worth EUR 14.3 billion at an enterprise value (approximately DKK 107 billion)," DSV said on September 13.
"The acquisition of Schenker will strengthen DSV's global network and capabilities. In addition to greater reach and better opportunities to serve its customers, the acquisition strengthens DSV's platform for growth and the development of a more sustainable and digital transport and logistics industry," it added.
Together, DSV and DB Schenker will have an expected pro forma revenue of approximately €39.3 billion (based on 2023 numbers) and a combined workforce of approximately 147,000 employees in more than 90 countries.
"This is a transformative event in DSV's history, and we are very excited to join forces with Schenker. With the acquisition, we bring together two strong companies, creating a world-leading transport and logistics powerhouse that will benefit our employees, customers and shareholders," said Jens H. Lund, Group CEO, DSV.
"By adding Schenker's competencies and expertise to our existing network, we improve our competitiveness across all three divisions: Air & Sea, Road, and Solutions. As well as enhancing our commercial platform across DSV, the acquisition will provide our customers with even higher service levels, innovative and seamless solutions and flexibility to their supply chains," he added.
Richard Lutz, CEO, Deutsche Bahn, noted that the sale of DB Schenker to DSV marks the "largest transaction in DB's history and provides our logistics subsidiary with clear growth prospects."
"It has been important for us to find a strong partner for Schenker and a long-term home for the employees of the company," Lutz added.
Jochen Thewes, chief executive officer at DB Schenker noted that the recent years "have been the most successful" in the company's history.
"We have proven that DB Schenker is fit for the future. We are excited about the future prospects of the combined business. Together with DSV, our goal is to transform the industry and build a truly global market leader with joint European roots for the best of our employees and our customers," he added.
German labour union Ver.di earlier raised concerns about Schenker's sale to DSV, citing possible job losses.
However, DSV appears to address this concern, saying in its announcement that the acquisition will make Germany a "key market" for DSV and substantially impact the future organisation.
"Various central functions will stay in Germany, including at the Schenker location in Essen," it said, adding that it expects to grow in Germany and plans €1 billion in investments in Germany in the next 3-5 years.
"The investments will contribute to long-term growth and job creation, as well as promoting modern and attractive workplaces. It is anticipated that five years from now, the combined organisation will have more employees in Germany than Schenker and DSV have today," DSV added.
Regulatory approvals sought
Meanwhile, DSV said 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.
"Until the closing of the transaction, DSV and Schenker remain two separate companies conducting business as usual," DSV said.
The DSV takeover of DB Schenker is expected to create the world's largest freight forwarder.
Armstrong and Associates said, based on 2023 figures, that DSV generated revenues of US$22.32 billion—ranking third behind Kuehne+Nagel and DHL—while DB Schenker ranked fourth with US$21.12 billion.
[Source: Armstrong & Associates]
The combined entity would yield total revenues of US$43.44 billion, putting it ahead of both Kuehe+Nagel and DHL Supply Chain & Global Forwarding.
The deal would also put DSV and DB Schenker on top in terms of airfreight volumes, with a combined 2.4 million tonnes and a close second to Kuehne+Nagel's 4.34 million TEUs in the ocean with 4.3 million TEUs together.
