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Report: CVC fights on for DB Schenker, despite DSV’s winning bid

Despite the German rail operator Deutsche Bahn accepting an offer from Danish logistics company DSV, the CVC Capital Partners led fund, which lost out in the bidding process, isn't ready to concede defeat. CVC has now offered to raise its bid.

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19.09.2024

Just days ago, DSV was announced as the winner of the DB Schenker sale process. Last Friday, it was revealed that the Danish company would acquire the German operator, owned by Deutsche Bahn, for EUR 14.3 billion.

It seemed like the end of the long-running “Sale of DB Schenker” saga. However, according to Bloomberg, CVC Capital Partners, which lost in the final stages, has indicated it is willing to increase its offer.

The agency, citing a letter CVC Capital Partners sent to the management and supervisory board of DB Schenker, reports that the private equity fund is prepared to offer more than the EUR 14 billion it initially proposed.

In the letter, CVC Capital Partners reportedly stated that it believes its offer is superior to the one put forward by DSV.

“If Deutsche Bahn has any remaining doubts about the comparison between the two offers, we are ready to discuss raising the value of our bid to eliminate these concerns,” the letter reads.

In response to the latest developments, DSV, the Danish logistics operator that won the bidding race for DB Schenker, offered a brief statement.

“As we announced in Friday’s statement, we have signed an agreement, which is still subject to approval by the Deutsche Bahn Supervisory Board and the German Ministry of Digital Affairs and Transport. We have no further comments,” DSV wrote in an email to Shipping Watch.

Deutsche Bahn’s supervisory board is set to meet on September 27 to discuss the acceptance of DSV’s offer. The transaction can only be halted if the board or the German government withholds approval.

If the merger between DB Schenker and DSV is approved, it would create a logistics giant. In 2023, both companies together generated EUR 39.3 billion in revenues, making them the largest logistics provider in the world. Currently, DSV ranks 4th and DB Schenker 5th globally, with each company employing over 70,000 people.

In maritime transport, DSV and DB Schenker handled 2.5 million TEU and 1.8 million TEU of cargo, respectively, in 2023.


Photo: Htm, CC BY-SA 3.0, via Wikimedia Commons

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