The board of Deutsche Bahn AG signed an agreement to sell its logistics subsidiary DB Schenker to the Danish transport and logistics group DSV for an enterprise value of EUR 14.3 billion. Including the expected interest income until completion, this results in a total sales value of EUR 14.8 billion. As the new owner, DSV plans to invest around EUR 1 billion in Germany over the next three to five years.
DB Schenker Güterverkehrszentrum Augsburg mit neuem Logistik-Hub
The aim 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 site in Essen. Overall, the buyer wants to offer more jobs in Germany in the future than are available in the two existing organizations today.
The agreement requires final approval by the Supervisory Board of DB and the Federal Government in accordance with the Federal Budget Code (BHO). The transaction is expected to be completed in the course of 2025 after all regulatory approvals have been received. The agreed social commitments, including those to protect jobs, apply for a period of two years after the transaction is completed, i.e. until 2027 if the transaction is completed in the course of 2025. The proceeds from the sale are to remain entirely in the DB Group and will significantly reduce debt.
“The sale of DB Schenker to DSV marks the largest transaction in the history of DB and gives our logistics subsidiary a clear growth perspective. In line with our Strong Rail strategy, we are concentrating on the public welfare-oriented rail infrastructure in Germany as well as climate-friendly passenger and freight transport in Germany and Europe. At the same time, the reduction of debt makes a substantial contribution to the financial viability of the Group. The focus over the next three years will be on the structural restructuring of the infrastructure, railway operations and profitability. In this way, we are creating a stable basis for the continued growth path of Strong Rail and our contribution to the federal government’s transport and climate policy goals,” says Richard Lutz, CEO of DB.
Concentrating on DB’s core business is a crucial prerequisite for implementing the long-term Strong Rail strategy, which – in line with the federal government’s transport policy objectives – aims to increase transport performance in rail passenger transport and the share of rail in freight transport.
With DSV, DB Schenker gains a financially strong owner and new growth prospects. With its leading position in numerous markets, DSV opens up considerable potential for DB Schenker. The aim is to create one of the world’s leading companies in the field of transport and logistics. DB Schenker will be a fundamental pillar in this process. Germany as a logistics location will benefit considerably from this.
“We have a clear plan on 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,” Jens H. Lund, Group CEO of DSV, added.
In December 2023, DB started the open, transparent and non-discriminatory process for the sale of DB Schenker in accordance with the requirements of EU law. In the competitive sales process, DSV prevailed with the offer that was clearly the most economically advantageous for Deutsche Bahn AG. In the summer of this year, 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 continue to develop dynamically in conjunction with DSV. The planned investments are intended to promote additional, sustainable growth. In addition, DSV has made a clear commitment to German co-determination and to existing collective agreements and works agreements.
“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 the history of our company and we have proven that DB Schenker is fit for the future. We are excited about the future prospects for the then 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,” Jochen Thewes, Chief Executive Officer of DB Schenker , said.
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