The sale of the logistics division of Germany’s national railway could lead to a major new supply chain player in the U.S.
According to the reports, final bids put DB Schenker, a unit of Deutsche Bahn, at up to $17 billion.
A group led by US-based CVC Capital Partners and Danish automaker DSV led the way with about 14 billion euros ($15.6 billion) in funding.
Schenker operates 1,850 locations worldwide, including more than 725 warehouses and 72,000 employees. Its revenue from land, sea, and aerospace in the first half of 2024 is $10.43 billion, up from $11.17 billion in 2023.
The Chesapeake, Virginia-based company has an estimated revenue of $3.5 billion. It provides services such as logistics, warehousing, marine, and aerospace.
If DSV wins the competition, the combined company could become the largest in the US exports and air cargo, and third in marine cargo, based on 2023 figures.
Reports say that DSV’s bid includes an option for the German government to buy a small stake, which would increase the deal’s value to $17.73 billion.
Berlin is selling Schenker to focus on its domestic rail network and reduce its debt, which exceeds $30 billion.
The reports mentioned that CVC plans to eventually list Schenker on the Frankfurt Stock Exchange while keeping its brand and headquarters in Germany.
A Deutsche Bahn spokesperson did not provide details on the sale. The only statement that came out was that the main priority is to make sure that the sale is economically beneficial for Deutsche Bahn.
CVC has yet to respond to a request for comment on the matter.
A final decision on the sale is likely to be made in the next few weeks and the deal may finalize in 2025.
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