GERMANY: Deutsche Bahn’s management board has signed a €14·3bn agreement to sell international logistics subsidiary DB Schenker to Danish transport and logistics group DSV. The sale forms part of DB’s ‘Strong Rail’ strategy to focus on its core activities, and does not include the DB Cargo rail freight business.
The agreement signed on September 13 is subject to final approval by the DB supervisory board and the German government.
DB said DSV’s offer ‘was clearly the most economically advantageous’ of the responses to the ‘open, transparent and non-discriminatory’ sale process launched in December 2023. A rival offer had been submitted by CVC Capital Partners.
The transaction is expected to be completed in 2025, with the proceeds retained within DB and used to significantly reduce its debt.
DB focuses on rail
The DB Schenker announcement follows DB’s sale of the Arriva non-German passenger transport business to I Squared Capital earlier this year.
‘The sale of DB Schenker to DSV marks the largest transaction in DB’s history and provides our logistics subsidiary with clear growth prospects’, said DB CEO Richard Lutz. ’In line with our Strong Rail strategy, we are focusing our business on rail infrastructure in Germany that serves the common good as well as on climate-friendly passenger and freight transport in Germany and Europe. At the same time, reducing debt will make a substantial contribution to the group’s financial sustainability.
‘The focus over the next three years will be on the restructuring of infrastructure, rail operations and profitability. This will create a stable basis for the continued growth path of Strong Rail and our contribution to the transport and climate policy goals of the federal government.’
Logistics powerhouse
‘This is a transformative event in DSV’s history’, said DSV Group CEO Jens H Lund. ’With the acquisition we bring together two strong companies, creating a world-leading transport and logistics powerhouse that will benefit our employees, customers and shareholders.
‘By adding Schenker’s competencies and expertise to our existing network, we improve our competitiveness across all three divisions: Air & Sea, Road and Solutions.’
Lund said ’we have a clear plan for how we want to become one of the world’s leading transport and logistics companies together. Hand-in-hand and under one roof, the employees of DSV and Schenker will combine our strengths to create a true global leader.’
