Danish logistics firm DSV is in advanced talks to acquire DB Schenker, the logistics unit of German state railway Deutsche Bahn, in a deal worth €14bn. While a final agreement is expected to be reached by the end of the week, it still needs approval from DB’s supervisory board. Investor CVC Capital Partners, who had also expressed interest in acquiring DB Schenker, made a last-minute attempt to win over the management and supervisory boards, offering a deal that would allow DB to retain a 24.9% stake in Schenker for an investment of €1bn.
The decision to sell Schenker, the most profitable division of DB, is part of the railway’s strategy to reduce debt amounting to €30bn and focus on its domestic passenger business. While supporters of CVC’s deal argue that it would be economically advantageous for DB, labor representatives are concerned that a takeover by DSV would lead to job cuts. Despite their concerns, the sale of DB Schenker is seen as crucial to unlocking investment for DB’s passenger business.
Both DSV and CVC declined to comment on the potential acquisition, while a DB spokesperson emphasized that the sales process is confidential and the decision will ultimately be made by the supervisory board of DB. The deal, whichever way it goes, will have significant implications for both DB and the logistics industry as a whole, as the fate of DB Schenker hangs in the balance.
Sources:
https://www.euronews.com/2022/05/24/germanys-deutsche-bahn-says-no-decision-made-on-dbs-dsv-schenker-sales
https://www.bloomberg.com/news/articles/2022-05-23/cvc-woos-deutsche-bahn-in-last-minute-push-to-buy-dbs-schenker
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