Danish logistics company DSV (DSV.CO) is set to acquire Schenker, the rail logistics arm of Deutsche Bahn, in a major €14 billion ($15.43 billion) transaction, according to sources at the German railway and government. The preliminary contract for the deal is expected to be signed in the coming days, pending approval by Deutsche Bahn’s supervisory board, which includes government, parliamentary, and union representatives.
Financial investor CVC (CVC.AS) was also in the running but did not succeed. The deal will be the most expensive acquisition for DSV to date, propelling it ahead of Swiss group Kuehne und Nagel (KNIN.S) in both volume and revenue, making it the world’s leading freight forwarder, as noted by brokerage Sydbank.
Deutsche Bahn is selling Schenker to invest in its struggling domestic passenger business and to reduce its €30 billion debt. Despite opposition from union representatives concerned about potential job losses, the government’s decision was decisive. DSV, which has recently expanded through several acquisitions, will now enhance its air and sea operations with this significant purchase.