Report: DSV is set to acquire DB Schenker for $15.4 Billion

Danish logistics company DSV has won the race to buy DB Schenker, the logistics arm of Deutsche Bahn, in a deal worth $15.4 billion. This acquisition, expected to be finalized soon, will make DSV the largest freight forwarder in the world, surpassing Swiss competitor Kuehne + Nagel.

The deal, first reported by Reuters, is awaiting approval from Deutsche Bahn’s supervisory board, which includes government, union, and parliamentary representatives. The board is expected to meet soon to finalize the agreement. Deutsche Bahn is selling Schenker, its most profitable division, to help fund its domestic passenger operations and reduce its $32 billion debt.

Financial investor CVC was the other final bidder, offering a deal that would have allowed Deutsche Bahn to retain a minority stake in Schenker. However, DSV’s higher bid and plans to invest $1 billion to boost Schenker’s profitability gave it the edge. Union representatives had preferred CVC’s bid, fearing job losses under DSV’s ownership. Despite these concerns, the German government, as the owner, ultimately backed DSV’s offer.

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