Denmark's DSV has agreed bongdaso ìno buy Schenker, the logistics arm of German state rail operator Deutsche Bahn, for 14.3 billion euros (.85 billion) in a deal that would make it the world's biggest logistics company.
bongdaso ìno acquisition will be bongdaso ìno biggest by a Danish company and propel DSV above Swiss group Kuehne und Nagel in both volume and revenue.
bongdaso ìno all-cash transaction will be financed through a combination of an equity raising of 4-5 billion euros and debt financing, DSV said.
DSV, which started as a small enterprise of 10 truckers in 1976, said the commercial and operational fit between the two groups will contribute bongdaso ìno growth, job creation and strong financial returns.
Shares in DSV were up 4% by 0701 GMT, extending recent gains triggered by reports that a deal was imminent.
"bongdaso ìno acquisition of Schenker is a transformative transaction for DSV, creating a world-leading player within bongdaso ìno global transport and logistics industry," DSV said in a statement.
Reuters reported on Wednesday that the Danish group had won the race bongdaso ìno buy Schenker, citing Deutsche Bahn and German government sources.
Pledges additional investment
As part of the deal, DSV has pledged bongdaso ìno invest 1 billion euros in Germany over the next 3-5 years and keep several key jobs in the country. The combined group will have more employees in Germany five years from now than Schenker and DSV have today, the Danish company said.
The deal, subject bongdaso ìno regulatory and German ministerial approval as well as by Deutsche Bahn's supervisory board, is expected bongdaso ìno close in the second quarter of next year.
bongdaso ìno combined group will have revenue of 293 billion Danish crowns (.52 billion) based on 2023 results, with a workforce of about 147,000 across more than 90 countries, DSV added.
"(It) marks the largest transaction in DB's history ... It has been important for us bongdaso ìno find a strong partner for Schenker and a long-term home for the employees of the company," Deutsche Bahn CEO Richard Lutz said in the statement.
DSV has grown rapidly through a string of successful acquisitions - some larger than bongdaso ìno company itself - in a highly fragmented logistics market.
Schenker, which has been Deutsche Bahn Group's biggest profit driver in recent years, has more than 70,000 employees in about 130 countries, including roughly 15,000 in Germany.
Source: https://www.reuters.com/markets/deals/freight-forwarder-dsv-buys-deutsche-bahns-schenker-159-billion-2024-09-13/
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