Global transport and logistics giant, DSV, has announced a groundbreaking deal to acquire Schenker from Deutsche Bahn. The transaction is valued at EUR 14.3 billion. This marks one of the largest acquisitions in the logistics industry to date.
DSV’s acquisition of Schenker is set to boost the company’s competitiveness and open access to new markets in the fast-moving logistics industry.
Reuters reports that Financial investor CVC (CVC.AS) was the other bidder still in the race to buy Schenker, after Maersk and Bahri withdrew their bids.
Maersk withdrew from the process citing “challenges from an integration perspective.”
Key highlights of the deal
- Enhanced global network: The acquisition strengthens DSV’s global presence, expanding its reach and service capabilities.
- Improved customer service: With greater reach, DSV will offer enhanced opportunities to serve its customers more effectively.
- Growth platform: The deal bolsters DSV’s platform for future growth and expansion in the logistics sector.
- Sustainability and digitalization: The acquisition supports DSV’s efforts toward developing a more sustainable and digitally advanced transport and logistics industry.
With the Schenker acquisition, Germany will become a key market for DSV, playing an important role in the company’s future.
Jens Lund, Group CEO of DSV says this acquisition will create a world-leading transport and logistics powerhouse.
“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,” says Lund.
DSV plans to fund the transaction with a mix of equity financing, estimated at $4.4 to 5.5 (EUR 4 to 5 billion) and debt financing.
Global logistics market
Precedence Research reports that global logistics is estimated to grow at an annual compound growth rate of 9.35% to reach $21.91 trillion by 2033.
“One of the key factors positively influencing the market is the booming e-commerce industry, as well as the improving availability of high-speed network connectivity,” reads the report.
The report adds that the market is also being driven by a shift in customer preference toward online purchases.
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Photo Credit: DSV
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
