DSV and CVC go toe to toe in DB Schenker bidding war

A bidding war is heating up for Deutsche Bahn’s logistics unit, DB Schenker, with Danish transport group DSV and a consortium led by CVC Capital Partners both submitting attractive offers.

According to Bloomberg, DSV and the CVC-led group have placed bids valuing DB Schenker at around €14 billion ($15.6 billion). The CVC consortium has also tabled a higher offer of up to €16 billion ($17.9 billion), which includes a proposal for the German government to reinvest in DB Schenker for a 25 per cent stake.

Deutsche Bahn is said to be currently evaluating the final offers and negotiating with the bidders. While no final decision has been made, a sale of DB Schenker could be one of the largest European transactions of the year.

German rail operator kicked off the official sale proceedings in December last year. At the time, DB said it had laid out “an open and non-discriminatory process for the sale of the shares”. The logistics arm was also valued between €12 billion ($13.4 billion) and €20 billion ($22.3 billion).

Initially, it was unveiled that Maersk, DSV, Bahri and a consortium comprising CVC, ADIA and GIC, were in the running to buy DB’s logistics arm. However, both Maersk and Bahri dropped out of the running leaving DSV and the CVC-led consortium in the race.