Denmark's DSV to Acquire DB Schenker in a US$15.85 Billion Deal

Denmark’s DSV has announced an agreement to purchase Schenker, the logistics arm of Deutsche Bahn, for US$15.85 billion. This acquisition is set to make DSV the largest logistics company in the world, surpassing Swiss-based Kuehne und Nagel in both volume and revenue.

The all-cash deal will be financed through a combination of an equity raising of US$4.5 - US$5.5 billion and debt financing. DSV, which began as a small enterprise of 10 truckers in 1976, sees this acquisition as a perfect operational fit, contributing to job creation and financial growth.

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The company stated, "The acquisition of Schenker is a transformative transaction for DSV, creating a world-leading player within the global transport and logistics industry."

Shares of DSV rose by 4% shortly after the announcement, following earlier reports that a deal was imminent.

Jens LundJens Lund, Group CEO at DSV, said, "Combining the two companies and building on the strengths of DSV and Schenker will have a significant impact on our customers, enabling us to provide even higher service levels, innovative solutions and additional flexibility to their supply chains."

Pledges of Additional Investment

As part of the acquisition, DSV has committed to investing US$1.1 billion in Germany over the next 3-5 years. The company also plans to retain key jobs in Germany, ensuring that the combined workforce will grow beyond its current size. With a projected revenue of US$43.52 billion, the group will employ approximately 147,000 people across 90 countries.

Deutsche Bahn’s CEO, Richard Lutz, stated: "It has been important for us to find a strong partner for Schenker and a long-term home for the employees of the company."

The acquisition is pending regulatory approval and is expected to close by the second quarter of next year.

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