In a move set to reshape the global logistics landscape, Danish logistics giant DSV is poised to acquire Schenker, the rail logistics arm of Germany’s Deutsche Bahn, in a transaction valued at approximately €14 billion ($15.43 billion). According to sources within Deutsche Bahn and the German government, a preliminary contract is expected to be signed soon, pending approval by Deutsche Bahn’s supervisory board, which includes representatives from the government, parliament, and labor unions.
CVC Capital Partners, the other key bidder in the race, had proposed an alternative offer. CVC’s proposal included a partial reinvestment by Deutsche Bahn, allowing the state-owned railway to retain a stake of up to 24.9% in Schenker. This alternative deal would potentially generate €2 billion to €2.5 billion in proceeds for Deutsche Bahn upon CVC’s exit from the investment. However, despite the attractive financial structure of CVC’s bid, DSV’s offer is reportedly favored by key decision-makers.
This acquisition marks a significant milestone for DSV, as the largest ever deal made by a Danish company. If the deal proceeds as expected, DSV would surpass Swiss competitor Kuehne und Nagel to become the world’s largest freight forwarder in both volume and revenue. Over recent years, DSV has grown rapidly through acquisitions, including American UTi, Swiss Panalpina, and Global Integrated Logistics (GIL) from Kuwait.
Despite the commercial benefits, the potential impact on Schenker’s workforce is a point of contention. With Schenker employing over 70,000 people across 1,850 locations worldwide, labor unions have voiced strong concerns. The union Ver.di, in particular, has been vocal in its opposition to DSV’s bid, fearing significant job losses. According to an internal union document, a DSV takeover could result in the loss of up to 5,300 jobs. Union representatives are advocating for the CVC bid, which they argue offers greater job security and would allow Schenker to maintain its independence.
Deutsche Bahn’s sale of Schenker, its most profitable unit, is primarily motivated by the need to reduce its €30 billion debt and fund investments in its core domestic passenger operations. The railway operator has faced significant financial pressure in recent years, and the sale of Schenker is seen as a crucial step in its restructuring process.
A spokesperson for Deutsche Bahn declined to comment on the deal, while DSV reiterated its policy of not responding to market speculation. The final decision is expected in the coming days, with the outcome likely to shape the future of both companies and the broader logistics industry.
