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DHL CEO Tobias Meyer ( pictured ) said acquiring DB Schenker would not have brought enough value . Oliver Berg / picture alliance via Getty Images

DB Schenker customers spooked by DSV takeover welcome at DHL : CEO

By Greg Knowler

DHL Group CEO Tobias Meyer has issued an invitation for DB Schenker customers nervous about the imminent takeover by DSV to switch their forwarding business over to the integrator .

“ We are open for business , and if customers want to give us a ring , please do so ,” Meyer told a briefing on DHL ’ s 2030 strategy . The company plans to outgrow the market across all its industrial divisions over the next five years .

“ We respect our competitors ..., but we have knowledge that integrations are not all that easy .”

DHL decided in March not to pursue an acquisition of DB Schenker , with Meyer stating he did not see the required upside to such a deal between two large companies in similar industries that would not have the value generation his company would want . Meyer reiterated that view in response to a question from the Journal of Commerce at the briefing .

“ We respect our competitors — both DSV and Schenker — for their strength and their capabilities , but we have knowledge that integrations are not all that easy ,” he said . “ When you come to two companies that are of equal size , it is particularly challenging .”

DSV ’ s € 14.3 billion ($ 15.9 billion ) bid was accepted by DB Schenker parent Deutsche Bahn in September , after the German state-owned rail company turned down a revised bid from the only other bidder left in the race , private equity firm CVC Capital Partners . Proceeds from the deal will be used to reduce debt and allow Deutsche Bahn to focus on its core rail business , although DSV will still need to clear regulatory hurdles before the integration of the DB Schenker brand can begin .

Potential suitors backed away

Deutsche Bahn began readying DB Schenker for sale in December 2022 but only called for bids in December of last year . Although there was initial interest from industry heavyweights DHL , Kuehne + Nagel , DSV and Maersk , it did not last .

Maersk shared DHL ’ s concerns , also citing “ integration challenges ” the carrier uncovered during an in-depth due diligence investigation of the Essen , Germany-based forwarder . Kuehne + Nagel withdrew its interest in March .

A key concern of the bidders was the size of a combined workforce ; for DSV and DB Schenker , that will be close to 150,000 people around the world with a 50 / 50 split . Integrations of large companies in similar industries typically come with significant job cuts , and that issue featured prominently during takeover negotiations .

The final two bidders for DB Schenker both pledged to limit redundancies to placate the German government and labor unions .

Another concern raised by industry analysts was the drain on DB Schenker ’ s post-pandemic record earnings that have been mostly siphoned off by its loss-making parent . That means DB Schenker has largely missed out on the drive for scale by rivals , keeping its hands in its pockets while its peers made a series of multibillion-dollar acquisitions in recent years .

email : greg . knowler @ spglobal . com

22 Journal of Commerce | October 21 , 2024 www . joc . com