Danish logistics giant DSV is set to announce the acquisition of DB Schenker, the rail logistics division of German state railway Deutsche Bahn, in a deal valued at €14 billion ($15.45 billion), according to sources familiar with the matter.
The deal is expected to be unveiled on Friday, with Deutsche Bahn’s supervisory board likely to approve it during a meeting scheduled for September 27.
The acquisition will solidify DSV’s position as the world’s largest freight forwarder by volume and revenue, surpassing industry rivals such as Kuehne & Nagel and DHL Global Forwarding. Once completed, the combined entity would generate annual revenues of approximately $43.4 billion, significantly ahead of its competitors.
DB Schenker, which employs over 70,000 people across 1,850 global locations, has been on the market since Deutsche Bahn decided to refocus on its domestic passenger rail services and reduce its €30 billion debt. The sale has been long anticipated, with various bidders showing interest. A consortium led by US-based CVC Capital Partners had also submitted a competing offer but was outbid by DSV.
Despite union concerns about potential job losses under DSV’s ownership, the Danish company has outlined plans to retain key operations in Germany and invest around €1 billion over the next three to five years to enhance profitability. DSV has committed to keeping employment stable for at least two years after the deal’s expected completion in 2025, though some reports suggest that between 1,600 and 1,900 jobs could be cut due to operational overlaps.
The acquisition is expected to encounter some regulatory scrutiny, as competition authorities may require DSV to sell off certain parts of DB Schenker’s business. However, DSV has a track record of efficiently integrating acquisitions, including its previous takeovers of Panalpina, UTi Worldwide, and Agility Global Integrated Logistics.
Reuters, Yahoo Finance, Air Cargo News, the Load Star contributed to this report.
