THE supervisory board of Germany state-owned railway firm Deutsch Bahn has approved the sale of DB Schenker at an extraordinary meeting to Denmark-based DSV for EUR14.3 billion (US$15.7 billion).
The federal government has also granted the approval required for the transaction under the Federal Budget Code (BHO).
The deal hasn't been made easy with union opposition and a reported attempt by rival bidder CVC to persuade deutsche Bahn to change its mind with an increased bid.
The sale will create the world's largest freight forwarder in terms of both air volumes and revenues and is expected to be completed next year once all regulatory approvals have been obtained.
Until the closing of the transaction, DSV and Schenker remain two separate companies, according to London's Air Cargo News.
'The sale of DB Schenker marks an important milestone for DB in its efforts to fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,' stated Werner Gatzer, chairman of the DB supervisory board.
'We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business.
'The proceeds from the sale will significantly reduce DB's debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,' said Richard Lutz, chief executive of Deutsche Bahn.
DB Schenker has around 72,700 employees at over 1,850 locations in more than 130 countries. Together, DSV and Schenker will have an expected pro forma revenue of approximately EUR39.3bn (based on 2023 numbers) and a combined workforce of approximately 147,000 employees in more than ninety countries.
Deutsche Bahn said DSV has planned investments of around EUR1 billion in the coming years.
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The federal government has also granted the approval required for the transaction under the Federal Budget Code (BHO).
The deal hasn't been made easy with union opposition and a reported attempt by rival bidder CVC to persuade deutsche Bahn to change its mind with an increased bid.
The sale will create the world's largest freight forwarder in terms of both air volumes and revenues and is expected to be completed next year once all regulatory approvals have been obtained.
Until the closing of the transaction, DSV and Schenker remain two separate companies, according to London's Air Cargo News.
'The sale of DB Schenker marks an important milestone for DB in its efforts to fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,' stated Werner Gatzer, chairman of the DB supervisory board.
'We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business.
'The proceeds from the sale will significantly reduce DB's debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,' said Richard Lutz, chief executive of Deutsche Bahn.
DB Schenker has around 72,700 employees at over 1,850 locations in more than 130 countries. Together, DSV and Schenker will have an expected pro forma revenue of approximately EUR39.3bn (based on 2023 numbers) and a combined workforce of approximately 147,000 employees in more than ninety countries.
Deutsche Bahn said DSV has planned investments of around EUR1 billion in the coming years.
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