A Reuters report has claimed that Danish logistics giant DSV has emerged as the successful bidder to acquire DB Schenker, the logistics division of German state-owned railway Deutsche Bahn (DB).
Reuters writes that according to insider sources from both the railway operator and the German Government, a preliminary contract for the deal, valued at around €14 billion ($15.43 billion), is expected to be signed in the coming days.
The sale now awaits approval from Deutsche Bahn’s supervisory board, composed of government, parliamentary, and union representatives.
DSV’s bid edged out rival financial investor CVC, the only other remaining contender in the race to buy Schenker. Despite DSV’s slightly higher bid compared to CVC’s, union representatives had voiced opposition due to concerns that the acquisition could lead to significant job losses, particularly in Germany. Ultimately, however, the German government, as DB’s primary stakeholder, has reportedly overruled these objections in favour of DSV’s offer.
The sale of Schenker comes as Deutsche Bahn seeks to focus on revitalising its core domestic passenger business, which has been plagued by delays, operational challenges, and a growing debt burden. With Schenker being one of its most profitable subsidiaries, Deutsche Bahn is expected to use the proceeds from the sale to alleviate its €30-billion debt load and finance much-needed investments into the struggling passenger operations.
DSV and DB have both declined to comment on the transaction publicly, writes Reuters.