Expedited : Spotlight on Air Cargo

Special Report

DSV takeover signals end to 150 years of DB Schenker brand

By Greg Knowler

DB Schenker ’ s legacy as a brand is paralleled only by the ascent of the company DSV swallowing it up to become the largest global forwarder .

“ You could argue that the commitment to Germany for the next two years was all about securing the deal .”

Formed in 1872 , Essen , Germany-based DB Schenker has been a standard-bearer in the air cargo and ocean forwarding markets for decades . But barring some regulatory hurdles , the company will be absorbed by DSV .

Acquisitions are nothing new to Denmark-based DSV , having scooped up UTi in 2015 for $ 1.35 billion , Panalpina in 2019 for $ 4.6 billion and Agility ’ s Global Integrated Logistics in 2021 for $ 4.2 billion . Schenker & Co . was founded in 1872 by Gottfried Schenker in Vienna and has developed into a global forwarder with approximately 75,000 employees . The combined DSV-DB Schenker entity will have close to 150,000 employees around the world with a 50 / 50 split .

The size of the workforce featured prominently during takeover negotiations , with the final two bidders both pledging to limit redundancies . DSV included social commitments to DB Schenker jobs in the acquisition agreement as well as a pledge to invest 1 billion euros in Germany over the next three to five years , “ which will contribute to ensuring long-term growth and job creation .”

The transaction is expected to be completed in the second quarter of 2025 , once all regulatory approvals have been obtained . Until the closing of the transaction , DSV and DB Schenker will remain separate companies conducting business as usual . Proceeds from the sale will remain entirely within the loss-making DB Group and will be used to reduce the rail operator ’ s significant debt burden .

German go-ahead ?

DSV said Germany “ will be a key market for DSV with a substantial impact on the future organization .” The forwarder said “ various central functions ” of DB Schenker would remain in Germany , including the Schenker head office in Essen .

Michael Clover , head of commercial development at consultancy Transport Intelligence ( Ti ), said DSV ’ s commitment to Germany in the final bidding stages appears to have been made to get the deal over the line with the

16 Journal of Commerce | October 7 , 2024 www . joc . com