DSV has signed an agreement to acquire Schenker from Deutsche Bahn in a €14.3 billion transaction.
Together, Denmark’s DSV and Schenker will have an expected pro forma revenue of approximately €39.3 billion (based on 2023 numbers) and a combined workforce of approximately 147,000 employees in more than 90 countries, creating the world’s largest freight forwarder.
“This is a transformative event in DSV’s history, and we are very excited to join forces with Schenker,” said DSV Group CEO, Jens Lund. “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.”
The acquisition of Schenker is expected to strengthen DSV’s global network and capabilities and develop a more sustainable and digital transport and logistics industry.
Germany will be a key market for DSV with a substantial impact on the future organisation. Various central functions will stay in Germany, including at the Schenker location in Essen. DSV expects to grow in Germany and plans €1 billion investments in Germany in the next 3-5 years.
“By adding Schenker’s competencies and expertise to our existing network, we improve our competitiveness across all three divisions – Air & Sea, Road, and Solutions,” Lund said. “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.”
As part of the agreement, DSV has 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 years period.
“DB Schenker is one of the most powerful and innovative teams in transportation and logistics with more than 150 years of experience,” said DB Schenker CEO, Jochen Thewes. “The recent years have been the most successful in our company’s history and we have proven that DB Schenker is fit for the future.”
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. DSV expects to finance the transaction through a combination of equity financing of around €4-5 billion and debt financing.
Until the closing of the transaction, DSV and Schenker remain two separate companies conducting business as usual.