Supervisory Board of Deutsche Bahn AG approves sale of logistics subsidiary DB Schenker to DSV

Berlin, October 2, 2024. Today, the Supervisory Board of Deutsche Bahn AG approved the sale of DB Schenker to the Danish transport and logistics group DSV at an extraordinary meeting on Wednesday. At the same time, the federal government today granted the approval required for the transaction under the Federal Budget Code (BHO). The sale is expected to be completed in the course of 2025 once all regulatory approvals have been obtained. 

On September 13, 2024, the Management Board of DB AG had signed an agreement under which it sells its logistics subsidiary to DSV for an enterprise value of 14.3 billion euros. Including the expected interest income until closing, the total sales value is up to 14.8 billion euros. 

“The sale of DB Schenker marks an important milestone for DB in its efforts to fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” explained Werner Gatzer, Chairman of the DB Supervisory Board. 

“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” said Dr. Richard Lutz, CEO of Deutsche Bahn. 

In December 2023, DB launched an open, transparent and non-discriminatory process for the sale of DB Schenker in accordance with EU law. As a result, DSV has prevailed with clearly the most economically advantageous offer for Deutsche Bahn. 

DB Schenker, with around 72,700 employees at over 1,850 locations in more than 130 countries, will be able to continue its development in the future in partnership with DSV. Planned investments of around one billion euros in the coming years are intended to promote additional growth potential. DSV has made a clear commitment to German co-determination and to existing collective and company agreements. Together, one of the world's leading transportation and logistics companies shall be created.

DB Schenker is one of the leading logistics service providers worldwide. The company offers land transport, air and ocean freight, as well as comprehensive logistics solutions and global supply chain management from a single source. With the goal of a sustainable future for the logistics industry, the company continuously invests in innovative transportation solutions, renewable energies and low-emission products for its customers.

*** September 13, 2024 ***

Deutsche Bahn signs agreement to sell logistics subsidiary DB Schenker to DSV

DB focusing on its core business and the implementation of its “Strong Rail” strategy • Sale proceeds to be used to significantly reduce debt of DB Group • Transaction creates one of the global market leaders with European homebase • Investments of around 1 billion euros planned in Germany in the coming years 

Berlin, September 13, 2024. The Management Board of Deutsche Bahn AG today signed an agreement for the sale of its logistics subsidiary DB Schenker to the Danish transport and logistics group DSV for an enterprise value (EV) of EUR 14.3 billion. Including expected interest income until completion, the total sales value amounts to EUR 14.8 billion. As the new owner, DSV plans to invest around one billion euros in Germany over the next three to five years.

The aim is to create a global market leader in the transport and logistics sector. Germany will become an even more important market in the new organization. Central functions are to be retained, including those at Schenker's  location in Essen, Germany. It is anticipated that five years from now, the combined organization will have more employees in Germany than Schenker and DSV have today.

The agreement is subject to final approval by the Supervisory Board of Deutsche Bahn AG and the German Federal Government in accordance with the Federal Budget Code (BHO). The transaction is expected to be completed in the course of 2025 following receipt of all regulatory approvals. The agreed social commitments, including those to protect jobs, will apply for a period of two years after completion of the transaction, i.e. until 2027 if the transaction is completed during 2025. The proceeds from the sale will remain entirely within the DB Group and will significantly reduce debt. 

Richard Lutz, CEO of Deutsche Bahn AG: “The sale of DB Schenker to DSV marks the largest transaction in DB's history and provides our logistics subsidiary with clear growth prospects. In line with our Strong Rail strategy, we are focusing our business on rail infrastructure in Germany that serves the common good as well as on climate-friendly passenger and freight transport in Germany and Europe. At the same time, reducing debt will make a substantial contribution to the Group's financial sustainability. The focus over the next three years will be on the structural restructuring of infrastructure, rail operations and profitability. This will create a stable basis for the continued growth path of Strong Rail and our contribution to the transport and climate policy goals of the federal government.”

Focusing on DB's core business is a key requirement for implementing the long-term Strong Rail strategy, which - in line with the German government's transport policy goals - aims to increase rail passenger traffic and rail's share of freight traffic. 

DB Schenker will gain a financially strong owner and new growth prospects with DSV. With its leading position in numerous markets, DSV opens up considerable potential for DB Schenker. The aim is to create a global leader in transport and logistics, with DB Schenker being a pivotal pillar. Germany as a logistics location will benefit considerably from this.

Jens H. Lund, Group CEO, DSV: “We have a clear plan for how we want to become one of 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 leader in the industry. This strategic combination with significant investments in competitiveness will ensure long-term growth and create sustainable jobs in Germany.” 

In December 2023, Deutsche Bahn AG launched an open, transparent and non-discriminatory process for the sale of DB Schenker in accordance with EU law. In the competitive sales process, DSV came out on top with the offer that was clearly the most economically advantageous for Deutsche Bahn AG. This summer, Deutsche Bahn completed the sale of its European local transport subsidiary DB Arriva. 

With around 72,700 employees at over 1,850 locations in more than 130 countries, DB Schenker will be able to continue its dynamic development in the future in association with DSV. The planned investments are intended to drive further sustainable growth.  DSV has also made a clear commitment to German co-determination and to existing collective and company agreements.

Jochen Thewes, Chief Executive Officer of DB Schenker, said: “With more than 150 years of experience, DB Schenker is one of the strongest and most innovative teams in transportation and logistics. The last few years have been the most successful in our company's history and we have proven that DB Schenker is fit for the future. We are excited about the future prospect of our combined businesses. Together with DSV, our goal is to transform the industry and build a truly global leader with common European roots - for the benefit of our employees and our customers.”

DB Schenker is one of the world's leading logistics service providers. The company offers land transportation, air and sea freight as well as comprehensive logistics solutions and global supply chain management from a single source. With the goal of a sustainable future for the logistics industry, the company continuously invests in innovative transportation solutions, renewable energies and low-emission products for its customers.

About DSV
At DSV, we keep supply chains flowing in a world of change. We provide and manage supply chain solutions for thousands of companies every day – from the small family-run business to the large global corporation. Our reach is global, yet our presence is local and close to our customers. More than 74,000 employees in over 80 countries work passionately to deliver great customer experiences and high-quality services. We aspire to lead the way towards a more sustainable future for our industry and are committed to trading on nature’s terms.

DSV is a dynamic organization that fosters inclusivity and diversity. We conduct our business with integrity, respecting different cultures and the dignity and rights of individuals.

dsv.com

Image credit: Deutsche Bahn AG / Volker Emersleben