DSV makes it official, DB Schenker deal signed
The saga over “the logistics sale of the century” has finally ended with the Danish logistics giant DSV putting pen to paper on the agreement to acquire DB Schenker from Deutsche Bahn. The company issued a statement early on Friday, September 13, confirming the reports swirling in the media recently. DSV has also unveiled the value of the acquisition to be €14.3 billion ($15.8 billion).
“This is a transformative event in DSV’s history, and we are very excited to join forces with Schenker. With the acquisition we bring together two strong companies, creating a world-leading transport and logistics powerhouse that will benefit our employees, customers and shareholders,” Jens H. Lund, Group CEO, DSV said. “By adding Schenker’s competencies and expertise to our existing network, we improve our competitiveness across all three divisions: Air & Sea, Road, and Solutions. As well as enhancing our commercial platform across DSV, the acquisition will provide our customers with even higher service levels, innovative and seamless solutions and flexibility to their supply chains.”
DSV faced stern competition from the CVC-led consortium that received strong backing from one of Germany’s largest worker unions Ver.di, who claimed that the CVC takeover would save more jobs at DB Schenker. It sent a letter to the Deutsche Bahn leadership noting that in the case of DSV’s takeover 5,300 jobs would be cut.
Furthermore, it was reported that CVC provided DB with an option to reinvest €1 billion for a 24.9 per cent stake in DB Schenker, resulting in €2 to €2.5 billion in proceeds when CVC exits the investment. The decision, however, swung DSV’s way, who themselves have made commitments to keep the job cuts between 1,600 and 1,900.
DSV said it will make the transition a smooth one prioritising the continuity of services. As part of the agreement, DSV has also issued social undertakings for employees in Schenker in Germany, which apply until two years after closing. Collective agreements and individual employment conditions for German employees on the closing date will generally be retained in the two-year period. DSV will apply the German principles of co-determination.
“The sale of DB Schenker to DSV marks the largest transaction in DB’s history and provides our logistics subsidiary with clear growth prospects. It has been important for us to find a strong partner for Schenker and a long-term home for the employees of the company,” Richard Lutz, CEO, Deutsche Bahn.
The deal is conditional on approvals by the Supervisory Board of Deutsche Bahn and by the German Federal Ministry for Digital and Transport, which are expected in the coming weeks.
