DSV to create global logistics giant with $15.9 billion Schenker takeover

By Stine Jacobsen, Jacob Gronholt-Pedersen and Rachel More

COPENHAGEN/BERLIN (Reuters) - Denmark's DSV has agreed to buy Schenker, the logistics arm of German state rail operator Deutsche Bahn, for 14.3 billion euros ($15.85 billion) in a deal that would make it the world's biggest logistics company.

The acquisition will be the biggest by a Danish company and propel DSV above Swiss group Kuehne und Nagel in both volume and revenue.

The all-cash transaction will be financed through a combination of an equity raising of 4-5 billion euros and debt financing, DSV said.

DSV, which started as a small enterprise of 10 truckers in 1976, said the commercial and operational fit between the two groups will contribute to growth, job creation and strong financial returns.

Shares in DSV were up 4% by 0701 GMT, extending recent gains triggered by reports that a deal was imminent.

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

Reuters reported on Wednesday that the Danish group had won the race to buy Schenker, citing Deutsche Bahn and German government sources.

PLEDGES ADDITIONAL INVESTMENT

As part of the deal, DSV has pledged to invest 1 billion euros in Germany over the next 3-5 years and keep several key jobs in the country. The combined group will have more employees in Germany five years from now than Schenker and DSV have today, the Danish company said.

The deal, subject to regulatory and German ministerial approval as well as by Deutsche Bahn's supervisory board, is expected to close in the second quarter of next year.

The combined group will have revenue of 293 billion Danish crowns ($43.52 billion) based on 2023 results, with a workforce of about 147,000 across more than 90 countries, DSV added.

"(It) marks the largest transaction in DB's history ... It has been important for us to find a strong partner for Schenker and a long-term home for the employees of the company," Deutsche Bahn CEO Richard Lutz said in the statement.

DSV has grown rapidly through a string of successful acquisitions - some larger than the company itself - in a highly fragmented logistics market.

Schenker, which has been Deutsche Bahn Group's biggest profit driver in recent years, has more than 70,000 employees in about 130 countries, including roughly 15,000 in Germany.



($1 = 0.9022 euros)

($1 = 6.7329 Danish crowns)

Source: Investing.com

Последние публикации
Oklo target nearly doubled at Wedbush on AI-driven demand for nuclear energy
24.01.2025 - 18:00
Crypto markets lose steam after Trump's first policy move
24.01.2025 - 18:00
Combination of Google's TPU-DeepMind units may be worth $700 bn - DA Davidson
24.01.2025 - 18:00
British American Tobacco, Altria shares rise after menthol ban proposal dropped
24.01.2025 - 18:00
Morocco stocks higher at close of trade; Moroccan All Shares up 0.34%
24.01.2025 - 18:00
Commerzbank says no talks with UniCredit until specific proposal made
24.01.2025 - 18:00
Venture Global aims for $64 billion valuation at debut in test for energy IPOs
24.01.2025 - 18:00
Intuitive Machines stock surges on NASA contract award
24.01.2025 - 18:00
International Paper's $7.2 billion acquisition of DS Smith gets EU approval
24.01.2025 - 18:00
Short-term stock optimism soars among retail investors, AAII survey shows
24.01.2025 - 18:00
Venture Global shares likely to open up to 6% above IPO price
24.01.2025 - 18:00
Intuitive Surgical, American Express Stir Friday's Market Cap Stock Movers
24.01.2025 - 18:00
BMW joins Chinese EV makers in filing EU court challenge to tariffs
24.01.2025 - 18:00
Turkey stocks lower at close of trade; BIST 100 down 0.08%
24.01.2025 - 18:00
Diageo stock jumps on possible Guinness sale
24.01.2025 - 18:00

© Analytic DC. All Rights Reserved.

new
Анализ рынка Как повлият завтра отчет NFP на курс доллара США?