The end of an era
DSV has acquired Panalpina and thus brought an era to an end in Swiss logistics history. In the early years, when the companies grew and prospered, there were parallels between them. Over the decades however, DSV has pursued a more consistent growth strategy, so that today the takeover of Panalpina by DSV is logical.
In May it will be 65 years since the Panalpina Holding was founded in Basel, when various companies and branch offices merged under the leadership of the firm Schweizerische Reederei AG. New entities and acquisitions made over subsequent years ensured that Panalpina became a global logistics provider.
Meanwhile 965 km north of Panalpina’s headquarters as the crow flies, DSV was founded under similar conditions in Denmark, though not until 1976. Nine independent freight forwarders came together to found a joint transport company. In a short time the business expanded abroad and DSV grew, mainly through acquisitions, until it became the logistics group we know today.
Long bidding battle for Panalpina
Panalpina is the latest prey of DSV’s aggres- sive growth strategy. The deal was preceded by a month-long takeover battle, during which DSV took significant risks. Having missed the opportunity of acquiring Ceva Logistics, the Danish group was under some pressure to find a suitable acquisition. The number of firms available for takeover is continuously decreasing, as the logistics sector continues to consolidate. In the end DSV raised CHF 4.6 billion to acquire the Swiss company. The group will bear both names in future. This decision may be only of symbolic value, but it does also indicate that this was not an everyday takeover, even for the managers of DSV, who are old hands at mergers and acquisitions.
Jobs in Basel in danger
There will now be the usual fallout from these kinds of transactions. At a press conference at Panalpina’s headquarters in Basel, DSV CEO Jens Andersen told the media that “the integration of Panalpina will take two to three years, and will probably cost a few jobs.” He added that growth would also create new jobs, however. For Panalpina employees the future is thus fraught with uncertainty.
Over the last weeks many employees expressed their loyalty to their employer on the website thevoiceofpanalpina.com, arguing for the continued independent existence of their company. That option is now finally over. The head office in Switzerland is also likely to be affected by job losses. DSV is expanding its headquarters in Copenhagen in the next few years; it wants to base large parts of its administration there.
