DHL, Mærsk, Kuehne & DSV – tears & rain, hope & faith
Getting there again…
PEP: TRADING UPDATE OUTMAERSK: BOTTOM FISHING NO MOREDHL: IN THE DOCKHLAG: GREEN DEALXOM: GEOPOLITICAL RISK AND OIL REBOUND IMPACTZIM: END OF STRIKE HANGOVERCHRW: GAUGING UPSIDEBA: STRIKE RISKDSV: STAR OF THE WEEKDSV: FLAWLESS EXECUTIONKNIN: ANOTHER LOWWTC: TAKING PROFITMAERSK: HAMMERED
PEP: TRADING UPDATE OUTMAERSK: BOTTOM FISHING NO MOREDHL: IN THE DOCKHLAG: GREEN DEALXOM: GEOPOLITICAL RISK AND OIL REBOUND IMPACTZIM: END OF STRIKE HANGOVERCHRW: GAUGING UPSIDEBA: STRIKE RISKDSV: STAR OF THE WEEKDSV: FLAWLESS EXECUTIONKNIN: ANOTHER LOWWTC: TAKING PROFITMAERSK: HAMMERED
Finally putting an end to all the media leaks, this morning Deutsche Bahn (DB) and DSV announced they have agreed a deal for the purchase of DB Schenker – subject to DB’s supervisory board approval.
DB’s board has signed a deal which will give DB Schenker an enterprise value of €14.3bn, which, with interest before closing, will be a total sales value of €14.8bn. All sale proceeds will go to DB, which will help it cut debt. DSV has also pledged to invest €1bn over three to five years. (For more on the nitty gritty of the deal, go to Loadstar Premium.)
Central Schenker functions will be retained, including its site in Essen.
“Overall, the buyer wants to offer more jobs in Germany in the future than are available in the two organisations that exist today,” noted DB in a statement.
The agreement still requires final approval by the Supervisory Board of DB and the Federal government; once agreed, along with other regulatory approvals, the transaction will close next year. Once closed, DSV will protect jobs in Germany for two years, likely up to 2027.
Rival bidder CVC Partners is still thought to be “fighting hard”, according to a source, but has few tools at its disposal. It is thought the private equity company is eyeing DB’s supervisory board: CVC hopes that the employee representatives on the board may vote against the DSV bid. However, out of 23 votes, only 10 would be from staff representatives. A further 10 are shareholders’ representatives, and three are from the German government.
Jochen Thewes, CEO of DB Schenker, said: “We are looking forward to the future prospects for the combined company. Our goal is to change the industry together with DSV and build a truly global market leader with common European roots – for the benefit of our employees and our customers.”
Jens Lund, CEO of DSV, said the company had “a clear plan”.
“Hand in hand and under one roof, the employees of DSV and Schenker will combine our strengths to create a true world market leader in the industry. This strategic alliance with significant investments in competitiveness will secure long-term growth and create sustainable jobs in Germany.”
The statement from the companies added that “DSV clearly prevailed with the most economically advantageous offer for Deutsche Bahn.”
“In addition, DSV has made a clear commitment to German co-determination and to existing collective agreements and works agreements.”
One forwarder from a regional company commented: “I’ve just sat on the sidelines watching them destroy themselves and their customer base with a wry smile of joy. Who needs salespeople?
“They are inward facing with their energy and effort and internal issues, relationships (or lack of) and this approach will pay dividends to the agile smaller local or regional players like us.
“We thrive from the fallout and slide in to the traditional ‘bluechip’ accounts next to the multinational globals who can’t keep up, apart from maybe on dumping rates as the incentive to remain in the game.”
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