Business

DSV acquires rail subsidiary Schenker for 14.3 billion euros

DSV acquires the logistics subsidiary Schenker from Deutsche Bahn for 14.3 billion euros.

Eulerpool News Sep 16, 2024, 2:17 PM

The sale of Deutsche Bahn subsidiary Schenker is official. The Danish logistics company DSV has confirmed the acquisition of the long-established shipping company for 14.3 billion euros, as both companies announced on Friday. After the approval of the supervisory boards and owners, the purchase is expected to be completed in the second quarter of 2025.

With this deal, DSV prevailed over the financial investor CVC, which according to negotiation circles had made a lower offer. DSV was able to secure the acquisition, even though the union Ver.di would have preferred CVC due to concerns about job cuts and the potential loss of the traditional name. In recent days, Schenker employees had demonstrated against the impending sale.

Despite the concerns from the unions, DSV is trying to reassure the workforce. In a letter to the railway management, the Danish company stated that in the long term, even more employees would work for the combined organization. However, between 1600 and 1900 positions, primarily in central areas and administration, are to be cut.

Schenker, which employs around 75,000 people worldwide, 15,000 of whom are in Germany, recently achieved an annual revenue of approximately 19 billion euros. DSV is similarly large and aims to further strengthen its market position through the acquisition. Deutsche Bahn plans to use the proceeds from the sale to focus on its core business in Germany and reduce its debt burden of over 30 billion euros.

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