DSV signs agreement to acquire DB Schenker for €14.3bn

DSV announced its biggest transaction to date after signing an agreement to acquire DB Schenker from Deutsche Bahn.

The acquisition will strengthen DSV's global network, expertise and competitiveness, benefiting employees, customers and investors. The enterprise value of the acquisition is €14.3 billion, says an official release from DSV.

Together, DSV and Schenker will have an expected pro-forma revenue of approximately €39.3 billion (based on 2023 numbers) and a combined workforce of approximately 147,000 employees in more than 90 countries, the release added.

"With this acquisition, Germany will be a key market for DSV with a substantial impact on the future organisation. Various central functions will stay in Germany, including at the Schenker location in Essen. DSV expects to grow in Germany and plans €1 billion investments in Germany in the next 3-5 years. The investments will contribute to long-term growth and job creation as well as promoting modern and attractive workplaces. It is anticipated that five years from now, the combined organisation will have more employees in Germany than Schenker and DSV have today."

Jens H. Lund, Group CEO, DSV says: "This is a transformative event in DSV's history, and we are very excited to join forces with Schenker. With the acquisition we bring together two strong companies, creating a world-leading transport and logistics powerhouse that will benefit our employees, customers and shareholders.

"By adding Schenker's competencies and expertise to our existing network, we improve our competitiveness across all three divisions: air & sea, road and solutions. As well as enhancing our commercial platform across DSV, the acquisition will provide our customers with even higher service levels, innovative and seamless solutions and flexibility to their supply chains."

Jochen Thewes, CEO, DB Schenker adds: "DB Schenker is one of the most powerful and innovative teams in transportation and logistics with more than 150 years of experience. The recent years have been the most successful in our company's history and we have proven that DB Schenker is fit for the future. We are excited about the future prospects of the combined business. Together with DSV, our goal is to transform the industry and build a truly global market leader with joint European roots for the best of our employees and our customers."

As part of the agreement, DSV has issued social undertakings for employees in Schenker in Germany, which apply until two years after closing, the release added. "Collective agreements and individual employment conditions for German employees on the closing date will generally be retained in the two years period. DSV will apply the German principles of co-determination."

The deal is likely to close in the second quarter of 2025. DSV expects to finance the transaction through a combination of equity financing of around €4-5 billion and debt financing, the release added.