DSV’s Historic Acquisition: Denmark's Biggest Deal to Date

Denmark's DSV is set to become the world's largest logistics company after agreeing to purchase Schenker from Deutsche Bahn for 14.3 billion euros. The acquisition, which is the largest ever by a Danish company, will elevate DSV above DHL Logistics and Kuehne und Nagel in market share.

Denmark's DSV has agreed to acquire Schenker, the logistics arm of German state rail operator Deutsche Bahn, for 14.3 billion euros ($15.85 billion). The deal positions DSV as the world's largest logistics company, surpassing industry giants DHL Logistics and Swiss group Kuehne und Nagel, albeit holding only 6-7% of the global market.

Founded in 1976 as a small enterprise of 10 truckers, DSV has grown extensively through multiple acquisitions. CEO Jens Lund remarked that this latest deal is the largest in the company's history, eclipsing all previous transactions.

Deutsche Bahn's decision to sell Schenker aligns with its strategy to focus on its core railway business in Germany and address its debt. CVC was the final bidder standing after Maersk and Bahri withdrew. DSV shares fluctuated following the announcement, with analysts noting the deal's favorable terms.

The all-cash transaction will be funded through equity raising and debt financing. The enlarged group, boasting a revenue of 293 billion Danish crowns ($43.52 billion), will employ approximately 147,000 people across over 90 nations.

DSV CFO Michael Ebbe revealed plans to reduce Schenker's German workforce by up to 1,900 jobs while investing 1 billion euros in the country. Despite union concerns, Ebbe assured an eventual increase in employment within Germany. The transaction awaits regulatory and ministerial approval and is expected to close by Q2 next year.

(With inputs from agencies.)