Is big always better? Kuehne+Nagel CEO says "No" for now…

With the board of Deutsche Bahn (DB) voting today for the approval of the over €14 billion sale of its logistics subsidiary DB Schenker to Danish major DSV, the all-powerful German trade union Eisenbahn-und Verkehrsgewerkschaft (EVG), which workers in the transport and railway industries, is all set to vote against the deal.

"Politicians and the railway board want to sell off the family silver as a strategy," Martin Burkert, EVG chief was quoted in Frankfurter Allgemeine Zeitung. "But sustainable business policy looks different."

CVC, the other bidder for DB Schenker, has accused Deutsche Bahn of having favoured DSV in a non-transparent process, the report added. "The financial investor has three sovereign wealth funds on its side in its bid: GIC from Singapore, ADIA from Abu Dhabi and QIA from Qatar. Even after the preliminary agreement between Deutsche Bahn and DSV was concluded, it is convinced that its offer is economically more advantageous."

Seen in this context, the view of Stefan Paul, CEO, Kuehne+Nagel sounds important. "We are all well aware of the recent announcement that the logistics landscape will further consolidate. We also considered the opportunity but quickly decided not to pursue," Paul wrote in a LinkedIn post.

3 big players
Another context - DSV+DB Schenker, together, "within the air & sea division, will be handling approximately 4.3 million containers (TEUs) and approximately 2.4 million tonnes of air freight annually."

Kuehne+Nagel, on the other hand, handled 4.3 million TEUs in 2023 with an air cargo volume of nearly two million tonnes.

DHL, the other big competitor, handled 1.7 million tonnes of air cargo and 3.1 million TEUs in ocean freight in 2023.

Continuity is key
Paul writes: "Our answer at Kuehne+Nagel is simple: We continue prioritising the needs of our customers and employees. That’s why we focus on our Roadmap 2026 strategy and mostly organic, profitable growth. Of course, we remain open to opportunities that may arise. Where there is a good fit and it makes sense, we will continue to make strategic acquisitions. But for us, growth is about becoming better, not necessarily bigger.

"Digitisation and building a digital ecosystem are key parts of this, along with other pillars of the Roadmap 2026, such as the Kuehne+Nagel Experience, Living ESG, and Market Potential. The latter involves exploring growth in key industry areas and markets where we can offer best-in-class solutions and add value for our customers."

Paul adds that Kuehne+Nagel is making good progress with its strategy, and the decision to stick to strategy, even in uncertain times, is "key to our success. Additionally, one of our strengths is our clarity of purpose with our Vision 2030 of becoming the most trusted supply chain partner supporting a sustainable future."

DHL recently unveiled its Strategy 2030 - Accelerate Sustainable Growth, striving for 50 percent revenue growth by 2030 compared to 2023.

DHL will invest in fast-growing sectors like life sciences & healthcare, new energy and e-commerce while delivering end-to-end digital customer experience.

So, the roadmap is clear for all Big 3 - sustainable, profitable and open to acquisitions.