News / CVC bid for DB Schenker safeguards jobs and independence

© Mohamed Ahmed Soliman

DB Schenker would remain independent and not merge with Scan Global, if acquired by CVC Capital Partners, and could opt for an IPO, according to a source.

The bid for DB Schenker by a consortium led by the private equity firm plans to develop the company as an independent entity and maintain its brand. The HQ will remain in Germany, and the bidders are believed to have committed to safeguarding jobs in Germany. The bid also makes provision for a possible IPO when market conditions permit, a well-placed source has told The Loadstar.

The source also confirmed that the consortium has put in a €14bn bid for 100% control of the Deutsche Bahn (DB) logistics subsidiary while also tabling an offer of as much as €16bn that would give the German government the option of re-investing a roughly 25% stake in the company, enabling it continue to benefit from Schenker’s value creation.

CVC already owns Denmark’s fast-growing Scan Global Logistics, acquiring a majority stake in February 2023. It has annual revenue of more than $3bn, 150+ locations, across 45 countries and employs more than 3,300 staff.

The source understands there are no plans for a merger between SGL and Schenker if CVC’s bid for the latter is accepted.

Commenting on the recent media reports that the other bidder, DSV, has ’sweetened’ its offer by promising to invest €1bn in Schenker within three to five years to make it more profitable, the source noted: “This needs to be seen within the context of the much higher estimates of Schenker’s investment needs as set out in its business plan. Given the size of the company, the €1bn investment would probably be soaked up rather soon.”

DSV has also reportedly committed to safeguarding jobs for two years.

Deutsche Bahn has a board meeting scheduled in mid-September at which the winning bid could be announced, but in any case it is widely expected that a decision will be reached by the end of this month.