Danish logistics giant DSV has clinched a definitive agreement to purchase Deutsche Bahn’s logistics arm, DB Schenker, for €14.3 billion ($15.9 billion). This acquisition marks the largest in DSV’s history and promises to enhance its global reach to new markets and provide long-term growth, job creation and modernisation of workplaces.

Green and blue DSV flags waving in the wind against a clear sky backdrop

DSV’s acquisition of DB Schenker marks a major expansion in its global logistics network, setting the stage for increased market reach and enhanced capabilities

Amid recent speculation that DSV was ahead of equity fund CVC in the race to acquire DB Schenker, DSV has now confirmed it has reached a definitive agreement to purchase the logistics provider.

The merger will create a logistics network with an expected pro forma revenue of around €39.3 billion ($43.6 billion) – based on 2023 figures – and a combined workforce of approximately 147,000 employees across more than 90 countries. The move is expected to enhance DSV’s competitive edge and expand its market presence within the logistics industry.

Regarding impact on the automotive sector, Daniel Harrison, Automotive Analyst, Automotive Logistics, commented: “We know that the automotive logistics sector is currently too fragmented to be efficient. We therefore expect to see further consolidation and strategic acquisitions within the automotive logistics sector over the coming years.”

According to the European Automotive Logistics Report 2024-2034, DSV’s total division revenues in 2023 were €19.6 billion ($21.7 billion) at the time the report was prepared, with an estimated annual revenue of €0.6 billion ($0.66 billion) from European automotive inbound logistics. DB Schenker, meanwhile, had total division revenues of €20.2 billion ($22.4 billion), with an estimated annual revenue of €0.64 billion ($0.7 billion) from European automotive inbound logistics.

“There is an increasing focus on improving automotive logistics – both inbound and vehicle logistics – to enhance cost competitiveness and ultimately reduce total cost of vehicles,” Harrison continued. ”Developing more integrated end-to-end solutions will be a key part of addressing these challenges.

 “In this context, the DSV acquisition of DB Schenker therefore makes perfect sense to complement its existing logistics services and fulfil its overall strategy.”

Strengthening global reach and capabilities
With the integration of Schenker’s network and expertise, DSV aims to develop its service offering across three of its key divisions: Air & Sea, Road and Solutions. Jens Lund, CEO of DSV, shared: “This is a transformative event in DSV’s history, and we are very excited to join forces with Schenker. Together, we are creating a world-leading transport and logistics powerhouse that will benefit our employees, customers and shareholders.”

Harrison noted that the acquisition aligns with DSV’s strategy to address the volatility in container shipping rates experienced over recent years. He explained: “DSV’s pursuit of this acquisition reflects its aim to diversify beyond shipping. For example, other key bidders, such as Maersk for example, have stated that they want to expand their land-based logistics operations. Furthermore, many shipping companies want to develop more integrated, and end-to-end solutions, particularly within the automotive logistics space to capture more of this business.”

Germany will play a pivotal role in the future of the newly formed entity. DSV plans to invest approximately $1 billion in Germany over the next three to five years, focusing on long-term growth, job creation and modernising workplaces. The integration will see significant operations and central functions remaining in Germany, particularly at Schenker’s Essen location. DSV anticipates that within five years the combined workforce in Germany will surpass the current employee numbers of both companies.

Voices from the leadership
Jochen Thewes, CEO of Schenker, expressed enthusiasm about the merger: “Together with DSV, our goal is to transform the [logistics] industry and build a truly global market leader with joint European roots for the benefit of our employees and customers.”

Similarly, Richard Lutz, CEO of Deutsche Bahn, lauded the deal as a historic milestone: “The sale of DB Schenker to DSV marks the largest transaction in DB’s history and provides our logistics subsidiary with clear growth prospects. It has been important for us to find a strong partner for Schenker and a long-term home for the employees of the company.”

The transaction is pending approvals from Deutsche Bahn’s Supervisory Board and the German Federal Ministry for Digital and Transport, with regulatory clearances expected by Q2 2025. DSV plans to finance the deal through a combination of equity and debt financing.

Until the deal is finalised, DSV and Schenker will continue to operate as separate entities, maintaining their current business operations. DSV shared the integration process will be a collaborative effort, with a focus on ensuring a smooth transition and upholding the high standards for which both companies are known.

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