Deutsche Bahn has approved the sale of its freight forwarding business DB Schenker to transport and logistics group and fellow forwarder DSV.
Denmark-based DSV confirmed last month that it had agreed to buy Germany headquartered DB Schenker from state-owned railway firm Deutsch Bahn for €14.3bn, but the transaction process hasn’t since been made easy with union opposition and a reported attempt by rival bidder CVC to persuade Deutsche Bahn to change its mind with an increased bid.
But today, the supervisory board of Deutsche Bahn approved the sale of DB Schenker at an extraordinary meeting, said Deutsche Bahn in a press release.
The federal government has also granted the approval required for the transaction under the Federal Budget Code (BHO).
The sale is now expected to be completed next year once all regulatory approvals have been obtained. Including the expected interest income until the close of the sale, the total sales value is up to €14.8bn.
Deutsche Bahn commented that “DSV has prevailed with clearly the most economically advantageous offer for Deutsche Bahn”. “The sale of DB Schenker marks an important milestone for DB in its efforts to fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” explained Werner Gatzer, chairman of the DB Supervisory Board. “We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” said Richard Lutz, chief executive of Deutsche Bahn.
Deutsche Bahn announced that DB Schenker was officially up for sale in December 2023 as it looked to reduce debts. DB Schenker has around 72,700 employees at over 1,850 locations in more than 130 countries. Deutsche Bahn said DSV has planned investments of around €1bn in the coming years to promote additional growth potential.
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