Deutsche Bahn: The sale of DB Schenker to DSV marks the largest transaction in DB’s history

13.09.2024 09:07

The Management Board of Deutsche Bahn AG today signed an agreement for the sale of its logistics subsidiary DB Schenker to the Danish transport and logistics group DSV for an enterprise value (EV) of EUR 14.3 billion.

Including expected interest income until completion, the total sales value amounts to EUR 14.8 billion. As the new owner, DSV plans to invest around one billion euros 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 organization. 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 organization will have more employees in Germany than Schenker and DSV have today.

The agreement is subject to final approval by the Supervisory Board of Deutsche Bahn AG and the German Federal Government in accordance with the Federal Budget Code (BHO). The transaction is expected to be completed in the course of 2025 following receipt of all regulatory approvals. The agreed social commitments, including those to protect jobs, will apply for a period of two years after completion of the transaction, i.e. until 2027 if the transaction is completed during 2025. The proceeds from the sale will remain entirely within the DB Group and will significantly reduce debt.

Richard Lutz, CEO of Deutsche Bahn AG: “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 as well as on 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. The focus over the next three years 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.”

Focusing on DB’s core business is a key requirement for implementing the long-term Strong Rail strategy, which – in line with the German government’s transport policy goals – aims to increase rail passenger traffic and rail’s share of freight traffic.

DB Schenker will gain a financially strong owner and new growth prospects with DSV. With its leading position in numerous markets, DSV opens up considerable potential for DB Schenker. The aim is to create a global leader in transport and logistics, with DB Schenker being a pivotal pillar. Germany as a logistics location will benefit considerably from this.

Jens H. Lund, Group CEO, DSV commented: “We have a clear plan for how we want to become one of 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 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 an open, transparent and non-discriminatory process for the sale of DB Schenker in accordance with EU law. In the competitive sales process, DSV came out on top with the offer that was clearly the most economically advantageous for Deutsche Bahn AG. This summer, Deutsche Bahn completed the sale of its European local transport subsidiary DB Arriva.

With around 72,700 employees at over 1,850 locations in more than 130 countries, DB Schenker will be able to continue its dynamic development in the future in association with DSV. The planned investments are intended to drive further sustainable growth. DSV has also made a clear commitment to German co-determination and to existing collective and company agreements.

Jochen Thewes, Chief Executive Officer of DB Schenker, said: “With more than 150 years of experience, DB Schenker is one of the strongest and most innovative teams in transportation and logistics. 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 are excited about the future prospect of our combined businesses. Together with DSV, our goal is to transform the industry and build a truly global leader with common European roots – for the benefit of our employees and our customers.”

DB Schenker is one of the world’s leading logistics service providers. The company offers land transportation, 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 transportation solutions, renewable energies and low-emission products for its customers.