Danish logistics firm DSV is in advanced talks to acquire DB Schenker, the logistics unit of Germany’s state railway Deutsche Bahn (DB), in a deal worth €14 billion. The deal, if finalized by the end of the week, would still need approval from DB’s supervisory board. This news comes as a disappointment to investor CVC Capital Partners, who is also vying to buy DB Schenker.
CVC’s proposed deal would allow DB to retain a 24.9% stake in Schenker for an investment of €1 billion, potentially delivering returns of €2 billion to €2.5 billion to DB. Labour union Verdi is supporting CVC’s deal, despite it being lower than DSV’s offer, as a takeover by DSV could lead to more job cuts, according to labour representatives.
DB is looking to sell Schenker, its most profitable division, to generate funds for its domestic passenger business and reduce its €30 billion debt. DSV and CVC declined to comment on the negotiations, while a DB spokesperson stated that the sales process is confidential and that any decision on the sale of DB Schenker would need approval from the supervisory board and the Federal Government.
The acquisition of DB Schenker by DSV would significantly impact the logistics industry and potentially lead to restructuring and job cuts. The outcome of the sales process will have far-reaching implications for the future of DB and the German transportation sector.
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