DFDS pulls out of €500m Ekol takeover bid

Danish ferry and haulage operator DFDS has abandoned its bid to acquire the international transport assets of Turkish firm EKOL Logistics.

In April, DFDS announced that it had agreed a €500m deal to acquire Ekol’s “overland transport network between Europe and Turkey”, as it sought to take advantage of the growth of nearshoring manufacturing in Turkey and reduce its corporate reliance on ferry revenues by growing its logistics division.

However, in a regulatory news filing today, DFDS said “completion of the transaction was conditional upon regulatory approvals and certain contractual conditions.

“As certain contractual conditions have not been satisfied by the agreed deadline, DFDS has terminated the share purchase agreement and the transaction will consequently not take place,” it added.

In an accompanying announcement, DFDS lowered its 2024 EBIT guidance from the previous level of DKr1.7-2.1bn (US$247m-305m) to DKr1.5-1.7bn.

“DFDS’ EBIT outlook range for 2024 is revised following results below expectations driven by mainly a more widespread slowdown in Europe than previously expected as well as intensified competition in northern European land transport markets and the Mediterranean freight ferry market,” it said.

“The current market conditions are expected to continue for the rest of the year whilst a rebound in activity was previously expected for the rest of the year.

“The termination of the share purchase agreement to acquire the international transport network of Ekol Logistics, announced earlier today, may moreover in Q4 2024 entail some financial impact,” it added.

DFDS is due to publish its Q3 2024 interim report on 7 November.