DSV to take over DB Schenker

September 13, 2024

The Danish Hedehusene-headquartered multinational transport & logistics company has signed an agreement with Deutsche Bahn to acquire DB Schenker for €14.3 billion.

DSV expects to finance the transaction through a combination of equity financing of around €4-5 billion and debt financing.

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.

As part of the agreement, DSV has issued social undertakings for DB Schenker's employees in Germany, applying until two years after closing.

"Collective agreements and individual employment conditions for German employees on the closing date will generally be retained in the two years period. DSV will apply the German principles of codetermination [the right of workers to participate in management of the companies they work for]," DSV shared in a press release.

The company also said, "Various central functions will stay in Germany, including at the Schenker location in Essen. DSV expects to grow in Germany and plans EUR 1 billion investments in Germany in the next 3-5 years."

"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. 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," Jens H. Lund, Group CEO, DSV, commented.

"DB Schenker is one of the most powerful and innovative teams in transportation and logistics with more than 150 years of experience. The recent years have been the most successful in our company's history and 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," added Jochen Thewes, DB Schenker's CEO.

Richard Lutz, CEO of Deutsche Bahn, also said, "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."

Until the closing of the transaction, DSV and DB Schenker remain two separate companies.

Photo: DSV

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