Danish shipping and logistics company DFDS has announced the termination of its previously planned acquisition of the international transport network of Turkish logistics company Ekol Logistics.
The acquisition agreement, originally signed in April 2024, was subject to regulatory approvals and the fulfilment of certain contractual conditions. DFDS said that the deal had to be cancelled due to unfulfilled contractual conditions, with the deadline for completion now having passed.
DFDS also lowered its financial outlook to 2024, citing market challenges and the termination of the acquisition as factors. The company revised its estimated earnings before interest and tax (EBIT) for 2024 to a range of DKK 1.5-1.7 billion, down from an initial estimate of DKK 1.7-2.1 billion.
DFDS has also reduced its adjusted free cash flow forecast for the year to around DKK 1.2 billion, compared to a previous expectation of around DKK 1.5 billion.
According to DFDS, these adjustments reflect a more pronounced slowdown in the European market and increased competition in the Northern European and Mediterranean freight ferry markets. DFDS had initially expected an upturn in activity for the remainder of the year, but now expects challenging conditions to continue until the fourth quarter.
The termination of the Ekol acquisition is expected to have an additional financial impact in Q4.
Revenue growth expectations have also been revised and are now expected to be in the range of 8-10%, compared to 8-11% previously, due to the inclusion of Ekol Logistics revenue in the previous forecast.
DFDS will provide further insight into its financial performance in its interim report for the third quarter, which is scheduled for publication on 7 November.