DB Management Board signs agreement to sell DB Schenker to DSV

On 13 September, the Management Board of Deutsche Bahn AG signed an agreement for the sale of its logistics subsidiary DB Schenker to the Danish transport and logistics group DSV for an enterprise value of €14.3b. Including expected interest income until completion, the total sales value amounts to €14.8b.

As WorldCargo News reported on 12 September, DSV won the bid to acquire DB Schenker, with DB’s Management Board now signing the agreement, marking the next step in the selling process.

According to the DB’s statement released on 13 September, DSV plans to invest around €1b in Germany over the next three to five years.

“The aim is to create a global market leader in the transport and logistics sector. Germany will become an even more important market in the new organisation. Central functions are to be retained, including those at Schenker’s location in Essen, Germany. It is anticipated that five years from now, the combined organisation will have more employees in Germany than Schenker and DSV have today,” DB added.

Also on 13 September, DSV confirmed that it has signed an agreement to acquire DB Schenker from Deutsche Bahn.

The agreement is subject to final approval by the Supervisory Board of Deutsche Bahn AG and the German Federal Government under the Federal Budget Code (BHO). The transaction is expected to be completed in 2025 following receipt of all regulatory approvals.

The agreed social commitments, including those to protect jobs, will apply for two years after completion of the transaction, i.e. until 2027 if the transaction is completed during 2025. According to DB, the proceeds from the sale will remain entirely within the DB Group and will significantly reduce debt.

Until the closing of the transaction, DSV and Schenker remain two separate companies conducting business as usual.

Richard Lutz, CEO of Deutsche Bahn AG commented: “The sale of DB Schenker to DSV marks the largest transaction in DB’s history and provides our logistics subsidiary with clear growth prospects. In line with our Strong Rail strategy, we are focusing our business on rail infrastructure in Germany that serves the common good and climate-friendly passenger and freight transport in Germany and Europe. At the same time, reducing debt will make a substantial contribution to the Group’s financial sustainability. Over the next three years, the focus will be on the structural restructuring of infrastructure, rail operations and profitability. This will create a stable basis for the continued growth path of Strong Rail and our contribution to the transport and climate policy goals of the federal government.”

Jens H. Lund, Group CEO, DSV said: “We have a clear plan for how we want to become one of the world’s leading transport and logistics companies together. Hand in hand and under one roof, the employees of DSV and Schenker will combine our strengths to create a true global leader in the industry. This strategic combination with significant investments in competitiveness will ensure long-term growth and create sustainable jobs in Germany.”

In December 2023, Deutsche Bahn AG launched a process for the sale of DB Schenker under EU law. This summer, Deutsche Bahn completed the sale of its European local transport subsidiary DB Arriva.