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Deutsche Bahn has received several offers for its logistics division DB Schenker, which could fetch it more than 15 billion euros in one of Europe’s biggest deals this year.
Deutsche Bahn wants to sell the logistics division, also present in Romania. The aim is to focus on the core business of rail transport in Germany and on reducing its debt burden of more than 30 billion euros. In recent years, Schenker has been the most important source of profit for the German state company.
Deutsche Bahn sells DB Schenker
A consortium led by private equity firms CVC Capital Partners Plc and Carlyle Group Inc submitted a bid. This values the business at around 14 billion euros. The firms are discussing teaming up with the Abu Dhabi Investment Authority and Singapore’s sovereign wealth fund (GIC).
Schenker’s European rivals are DSV A/S, AP Moeller-Maersk A/S and MSC Mediterranean Shipping Co. They also submitted separate bids. The offers of some of the strategic bidders are lower than those of the private equity firms.
Even though the big logistics companies have taken advantage of the increase in transport costs following the Covid-19 pandemic, in recent months rates have started to fall as the world economy has slowed down. Schenker, which transports goods by land, air and sea, has helped Deutsche Bahn return to profitability in 2023.
DB Schenker is a global provider of logistics and transport services, with more than 76,000 employees worldwide, responsible for more than a third of Deutsche Bahn’s revenues.
Photo Source: https://www.bahn.de/
