Freight forwarder DSV buys Deutsche Bahn’s Schenker for $15.9 billion

COPENHAGEN (Reuters) -Denmark’s DSV said on Friday it has signed an agreement to buy Schenker, the German state rail operator Deutsche Bahn’s logistics unit, for 14.3 billion euros ($15.85 billion) in a deal which could make it the world’s biggest freight forwarder.

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

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

DSV’s acquisition of Schenker, the most costly for a Danish firm to date, is set to propel it above Swiss group Kuehne und Nagel in both volume and revenue, making it the leading freight forwarder globally, according to brokerage Sydbank.

DSV, a logistics firm that 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.

The combined group will have revenue of 293 billion Danish crowns ($43.52 billion) based on 2023 financials and a joint workforce of around 147,000 employees 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,” Richard Lutz, CEO of Deutsche Bahn, 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 most important profit driver in recent years, has more than 70,000 employees in around 130 countries worldwide, including around 15,000 in Germany.

($1 = 0.9022 euros)

($1 = 6.7329 Danish crowns)