DSV to Acquire Schenker in $15.9 Billion Deal, Creating World’s Largest Logistics Company
Danish logistics giant DSV has announced a landmark acquisition of Schenker, the logistics division of Germany’s state rail operator Deutsche Bahn, for €14.3 billion ($15.85 billion). This monumental deal will create the world’s largest logistics company, surpassing Swiss rival Kuehne und Nagel in both scale and revenue.
The acquisition, which is the largest-ever by a Danish company, will be financed through a mix of equity raising, estimated at €4-5 billion, and debt financing, according to DSV’s statement. The all-cash transaction marks a significant step for DSV, which began in 1976 as a modest enterprise with just ten truck drivers.
DSV highlighted the strategic and operational synergies between the two firms, forecasting substantial growth and job creation as a result. “The acquisition of Schenker is a transformative transaction for DSV, creating a world-leading player within the global transport and logistics industry,” said the company in a statement.
The deal is expected to be finalized by the second quarter of next year, pending regulatory and ministerial approvals, as well as approval from Deutsche Bahn’s supervisory board. Once completed, the newly formed entity will boast an impressive revenue of 293 billion Danish crowns ($43.52 billion) and employ approximately 147,000 people across over 90 countries.
In a bid to ensure a smooth transition and support local economies, DSV has committed to investing €1 billion in Germany over the next 3-5 years. The company also pledged to maintain and create additional jobs in the country, ensuring that the workforce will expand beyond current levels.
Deutsche Bahn CEO Richard Lutz expressed confidence in the deal, stating, “It has been important for us to find a strong partner for Schenker and a long-term home for the employees of the company.” Schenker, which has been Deutsche Bahn’s most profitable segment in recent years, operates in more than 130 countries with a workforce of over 70,000, including approximately 15,000 employees in Germany.
This acquisition underscores DSV’s aggressive growth strategy, having previously expanded through several high-profile deals in the fragmented logistics market. The integration of Schenker into DSV’s operations is expected to enhance the company’s global footprint and operational efficiency.