Danish logistics company DSV will be the new owner of DB Schenker. The company is putting 14,3 billion euros on the table for the acquisition, propelling it forward to possibly become the largest freight forwarder in the world.
The victory of DSV in the race for DB Schenker was already reported on Wednesday, but is now officially confirmed, Reuters writes. “The acquisition of Schenker is a transformative transaction for DSV, creating a world-leading player within the global transport and logistics industry,” the Danish company commented in a statement.
In the days leading up to DSV coming out on top, only two contenders for the purchase remained. The Danes are leaving equity firm CVC behind them, after both Maersk and Saudi shipping company Bahri dropped out earlier in the summer.
Last-minute battle for DB Schenker
In the lead-up to the finalisation of the deal, both DSV and CVC sweetened their bids in an attempt to win over DB. The Danish logistics company indicated that it wants to invest around 1 billion euros in DB Schenker in the years following the takeover to boost profitability.
CVC, for its part, offered an additional payment of at least 1 billion euros to Deutsche Bahn in case of a future initial public offering (IPO) exit. That offer would have stood if the German government went along with one of two variants of CVC’s bid, in which the state would remain a minority stakeholder in DB Schenker, Reuters wrote.
Brokerage Sydbank projects that DSV will now become the largest freight forwarder in the world in terms of both volume and revenue, writes Reuters.