DSV chief reticent on Schenker: the focus on growing market share
DSV focused on gains in market share, organic growth and making investors confident in its ...
© Scanrail
By Alex Lennane
It’s actually happening: Deutsche Bahn (DB) has announced the officially launch of the sale process for DB Schenker – on the condition that any sale must have “apparent economic advantages for Deutsche Bahn in all respects”.
The German rail behemoth said it was laying out “an open and non-discriminatory” process for the share sale, with potential buyers asked to register their interest with its advisory banks, Goldman Sachs and Morgan Stanley, by midday on 15 January.
DB said that, while DB Schenker had a “solid” position within a market which offers “excellent prospects for long-term growth”, Schenker would need “more capital and flexibility for its own growth”.
DB said it would use the sale proceeds largely to reduce its debt, which would enable it to focus on its core business and implement its Strong Rail sustainability strategy.
A year ago, DB’s supervisory board asked the management board to examine sale potential, and prepare. It said the final decision would be based on a separate resolution – which may be impacted by “general capital market developments”.
It added: “Deutsche Bahn has already completed, or contractually agreed, the sale of several of its business units in foreign markets, and would be taking another big step by letting go of DB Schenker.”
The move sets up some big M&A action for 2024, forecast by forwarders to be a “year of consolidation”. DSV, of course, is always monitoring the potential for another large acquisition, but there are other names in the fray – outside forwarding. Loadstar Premium noted in September that UPS had been rumoured to have shown interest.
And of course, large shipping lines have recently been interested in forwarders – although changing market conditions may have put the brakes on that.
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