Deutsche Bahn sells DB Schenker to DSV

The Board of Directors of Deutsche Bahn AG signed an agreement today, Friday, for the sale of its logistics subsidiary DB Schenker to the Danish transport and logistics group DSV for an enterprise value of 14.3 billion euros. Including the expected interest income until the completion, this results in a total sale value of 14.8 billion euros. As the new owner, DSV plans to invest around one billion euros in Germany over the next three to five years.

(Berlin) The goal is to create one of the leading companies in the transport and logistics industry. Germany is to become an even more important market in the new organization. Central functions are to be retained, including at the Schenker location in Essen. Overall, the buyer intends to provide more jobs in Germany in the future than currently exist in the two existing organizations.

The agreement requires final approval from the Supervisory Board of DB as well as from the federal government under the Federal Budget Code (BHO). Completion of the transaction is expected in 2025 after receiving all regulatory approvals. The agreed social commitments, including job protection, apply for a period of two years after the completion of the transaction, i.e., until 2027 if the transaction is completed in 2025. The proceeds from the sale are to remain entirely within the DB Group and will significantly reduce debt.

Richard Lutz, CEO of DB: “The sale of DB Schenker to DSV marks the largest transaction in DB’s history and provides our logistics subsidiary with a clear growth perspective. In line with our Strong Rail strategy, we are focusing our business on the public-interest-oriented rail infrastructure in Germany as well as climate-friendly passenger and freight transport in Germany and Europe. At the same time, reducing debt will make a substantial contribution to the financial viability of the Group. The focus over the next three years will be on the structural rehabilitation of infrastructure, rail operations, and profitability. This will create a stable foundation for the further growth path of the Strong Rail and our contribution to the transport and climate policy goals of the federal government.”

Focus on Core Business

The focus on DB’s core business is a crucial prerequisite for implementing the long-term strategy of the Strong Rail, which aims to increase transport performance in rail passenger transport and the share of rail in freight transport, in line with the federal government’s transport policy goals.

With DSV, DB Schenker gains a financially strong owner and new growth perspectives. DSV opens up significant potential for DB Schenker with its leading positioning in numerous markets. The goal is to create one of the world’s leading companies in transport and logistics. DB Schenker will be a fundamental pillar in this. The logistics location Germany will benefit significantly from this.

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

Most Advantageous Offer Prevails

In December 2023, DB initiated an open, transparent, and non-discriminatory process for the sale of DB Schenker in accordance with EU law. In the competitive sales process, DSV prevailed with the clearly economically most advantageous offer for Deutsche Bahn AG. Earlier this summer, DB completed the sale of its European local transport subsidiary DB Arriva.

DB Schenker, with its approximately 72,700 employees at over 1,850 locations in more than 130 countries, will be able to develop dynamically in conjunction with DSV. The planned investments are intended to promote additional sustainable growth. Furthermore, DSV has made a clear commitment to German co-determination and existing collective agreements as well as company agreements.

Jochen Thewes, CEO of DB Schenker, said: “DB Schenker is one of the strongest and most innovative teams in transport and logistics with more than 150 years of experience. The last few years have been the most successful in our company’s history, and we have proven that DB Schenker is fit for the future. We look forward to the future prospects for the combined company. Our goal is to change the industry together with DSV and build a truly global market leader with common European roots – for the benefit of our employees and our customers.”

Sustainable Future for the Logistics Industry

DB Schenker is one of the leading logistics service providers worldwide. The company offers land transport, air and sea freight, as well as comprehensive logistics solutions and global supply chain management from a single source. With the goal of a sustainable future for the logistics industry, the company continuously invests in innovative transport solutions, renewable energies, and low-emission products for its customers.

Photo: © Deutsche Bahn