Freight carrier DSV buys Schenker from Deutsche Bahn for $15.9 billion By Reuters

COPENHAGEN (Reuters) – Denmark’s DSV said on Friday it had signed an agreement to buy Schenker, the logistics unit of German state rail operator Deutsche Bahn, for 14.3 billion euros ($15.85 billion) in -a deal that could turn it into the world’s largest freight forwarder.

“The acquisition of Schenker is a transformative transaction for DSV, creating a world-leading player in 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 railway and German government sources.

DSV’s acquisition of Schenker, the most expensive 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 the brokerage Sydbank.

DSV, a logistics firm that started as a small business of 10 trucks 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 revenues of 293 billion Danish kroner ($43.52 billion) based on 2023 financial data and a combined workforce of around 147,000 employees in more than 90 countries, DSV added.

“(This) marks the largest transaction in DB’s history… It was important for us to find a strong partner for Schenker and a long-term home for the company’s employees,” said Deutsche Bahn CEO Richard Lutz. 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 the Deutsche Bahn Group’s most important profit generator in recent years, employs more than 70,000 people in around 130 countries worldwide, including around 15,000 in Germany.

(1 USD = 0.9022 euros)

($1 = 6.7329 Danish kroner)