THE supervisory board of German Rail (DB) and the German government separately approved the sale of DB Schenker to DSV on October 2. Subject to regulatory approvals, the €14.3bn deal is expected to be completed next year.
The sale to Danish transport and logistics group DSV was announced on September 13. Including the interest income expected to accrue before completion, DB says that the total sale value is €14.8bn. DB had faced mounting pressure to sell its most profitable subsidiary so that it could reduce net debt, which increased by €1bn in the first half of 2024 to €33bn at the end of June.
The DB board rejected a request from CVC Capital Partners, part of a consortium that was an underbidder in the process, to reconsider its decision to sell to DSV. DB also countered union concerns over potential job losses under the new owner, explaining that DSV plans to invest around €1bn in Germany over the next three to five years and will create more jobs in Germany in the future than currently exist in the two organisations.
“The proceeds from the sale will significantly reduce DB's debt and make an important contribution to the financial stability of the DB Group,” says DB CEO Dr Richard Lutz. “At the same time, Schenker is gaining a strong strategic owner in DSV.”
