DSV Acquires Schenker: Creating the World's Largest Logistics Giant

Denmark's DSV has agreed to purchase Schenker from Deutsche Bahn for 14.3 billion euros, making DSV the world's largest logistics firm. The acquisition will be financed through equity raising and debt. DSV pledges additional investment in Germany and forecasts significant growth and financial returns.

Denmark's DSV has signed an agreement to acquire Schenker, the logistics division of German state rail operator Deutsche Bahn, for 14.3 billion euros ($15.85 billion). This landmark deal will establish DSV as the largest logistics company globally, surpassing Swiss group Kuehne und Nagel in both volume and revenue.

The all-cash deal will be financed through a combination of equity raising of 4-5 billion euros and debt financing. DSV, which began as a modest enterprise of 10 truckers in 1976, believes the acquisition will foster growth, job creation, and robust financial returns.

Shares in DSV surged by 4% following news of the imminent deal. DSV's statement highlighted the transformative potential of the acquisition, positioning the company as a leading player in the global transport and logistics sector.

Reuters sources indicated DSV's victory in the competitive bid for Schenker. As part of the deal, DSV has committed to a 1 billion euro investment in Germany over the next 3-5 years and plans to retain several key jobs in the country.

The transaction, expected to finalize in the second quarter of next year, is subject to regulatory and German ministerial approvals, as well as Deutsche Bahn's supervisory board's consent.

DSV projects combined revenue of 293 billion Danish crowns ($43.52 billion) for the new entity, with a workforce of approximately 147,000 employees across over 90 countries. Deutsche Bahn CEO Richard Lutz emphasized the importance of securing a strong partner for Schenker and ensuring a stable future for its employees.

The acquisition continues DSV's trend of rapid growth through strategic acquisitions in the fragmented logistics market. Schenker, a significant profit generator for Deutsche Bahn, employs over 70,000 staff in 130 countries, including 15,000 in Germany.

(With inputs from agencies.)