Danish logistics giant DSV has confirmed that it has reached an agreement with Deutsche Bahn to acquire 100 percent of DB Schenker, the rail logistics arm of the German state railway. The transaction, valued at €14.3 billion, marks the largest acquisition in DSV’s history and positions the company as a global leader in logistics and freight forwarding.
“This is a revolutionary event in DSV’s history, and we are very excited to be able to join forces with Schenker,” said Jens H. Lund, CEO of DSV. The deal is expected to propel DSV ahead of competitors such as Swiss group Kuehne + Nagel, making it the world’s leading freight forwarder in both volume and revenue.
Impact on Global Logistics and Salmon Farming Industry
Schenker, which employs over 70,000 people in 1,850 locations worldwide, is Deutsche Bahn’s most profitable unit. The acquisition will significantly expand DSV’s reach, particularly in the rail logistics sector, complementing its existing air and sea freight operations. This expansion will enhance the company’s global supply chain capabilities, which are vital for industries heavily dependent on efficient transportation, such as salmon farming.
The salmon farming industry, which relies on the timely transport of perishable goods to global markets, stands to benefit from the expanded logistics network DSV will now control. With increased access to Schenker’s established rail operations, particularly in Europe, salmon producers will likely have more reliable and cost-effective routes to market, reducing transport times and potentially lowering costs.
Deutsche Bahn’s Strategic Shift
For Deutsche Bahn, the sale of Schenker comes at a crucial time as the company looks to invest in its core domestic passenger business and reduce its €30 billion debt. The German railway operator has been under pressure to finance improvements to its crisis-stricken passenger operations, and the sale of Schenker is expected to provide a significant financial boost.
While the sale has drawn opposition from union representatives, who raised concerns over potential job losses, especially in Germany, the government, as Deutsche Bahn’s owner, ultimately approved the transaction. DSV’s bid was slightly higher than that of rival CVC, which was also in the running to acquire Schenker.
DSV has aggressively expanded through a series of acquisitions in recent years, including its purchases of American UTi, Swiss Panalpina, and Kuwaiti Global Integrated Logistics (GIL). The acquisition of Schenker is part of DSV’s strategy to strengthen its global logistics footprint, with a particular focus on enhancing its air, sea, and now rail operations.
