Danish transport and logistics company DSV has completed the acquisition of Swiss logistics group Panalpina.

The deal is valued at Kr.37 billion (US$5.50 billion), including the impact from IFRS 16.

DSV said following the completion of the buyout it will change its registered name to “DSV Panalpina A/S” pending approval.

“We are very excited to welcome Panalpina’s customers, employees and shareholders to DSV. Our two companies will achieve more together, creating even more value for all our stakeholders,” DSV chief executive Jens Bjorn Andersen said in a statement. 

The acquisition is expected to result in operational cost savings of about Kr.2.2 billion (US$326.8 million) by 2022 from the consolidation of operations, logistics facilities, administration, and IT infrastructure.

It will also see a projected revenue of Kr.118 billion (US$17.5 billion) and a workforce of 60,000 employees in 90 countries, creating the world’s fourth-largest freight-forwarding firm, next to DHL Logistics, Kuehne + Nagel and DB Schenker. 

Under the deal, Panalpina shareholders will receive 2.375 DSV shares, with a nominal value of Kr.1 per share, for each Panalpina share.