Danish logistics group DSV is buying the transport company Schenker from German railway DB. The transaction is worth 14.3 billion euros, it was reported in a press release. The merger will create the largest transport services company in Europe.
The formal takeover of Schenker by DSV is expected to take place in the second quarter of 2025, subject to regulatory approvals.
The largest transport company in Europe will be established
– We are combining two strong companies to create a world-leading force in transport and logistics. This will benefit our employees, customers and shareholders, said DSV CEO Jens H. Lund.
German state railways DB have been planning to sell the transport company Schenker for years in order to invest the funds in modernizing the railways. According to Danish media, among those interested in taking over the German company was a group specializing in maritime transport from Denmark AP Moller-Maersk.
Under the agreement, DSV committed to respecting collective agreements for Schenker employees for two years and to invest in Germany EUR 1 billion over a period of three to five years, as well as maintaining the company's headquarters in Essen.
DSV takes over Schenker
According to the announcement, the Danish company intends to acquire 100 percent of the shares in DB Schenker and all of its subsidiaries. The money for this purpose is to come from a capital increase and a loan from a consortium of banks.
The transaction will make DSV the largest transport group in Europe in terms of turnover, overtaking DHL and Kuehne+Nagel. DSV and Schenker employ a combined 147,000 people in 90 countries.
According to DSV's website, the company operates in Poland in 30 locations, employing 3,500 people. In September, it announced the expansion of the Łódź hub.
Main image source: Shutterstock