Deutsche Bahn Approves Logistics Unit Sale to DSV

DSV A/S won approval to buy Deutsche Bahn AG’s logistics unit for 14.3 billion euros ($15.8 billion), overcoming resistance from German labor unions and late attempts by a rival bidder to derail the deal.

Deutsche Bahn’s supervisory board voted in favor of DSV’s bid and the German government has also approved the deal, the Danish company said Oct. 2. The purchase will make DSV the world’s largest freight-forwarder and turn it into Denmark’s second-largest company by revenue.

DSV A/S (North America) ranks No. 10 on the Transport Topics Top 100 list of the largest logistics companies in North America. It ranks No. 14 on the TT Top 50 list of the largest global freight carriers.

DB Schenker ranks No. 25 on the TT Top 100 list of the largest logistics companies in North America. Deutsche Bahn ranks No. 15 on the global freight carriers TT50.

Private equity firm CVC Capital Partners Plc, DSV’s remaining rival in the final bidding round, made new offers even after the deadline, but they were rejected by Deutsche Bahn. German labor unions had also opposed DSV, fearing the Danish company would cut many jobs. Media reports suggested that at least one employment group would vote against the deal at Deutsche Bahn’s board meeting.

DSV, which is based outside Copenhagen, said the acquisition remains subject to customary regulatory approvals and that completion is expected in the second quarter of 2025.

DSV will now need to secure financing for the deal. It has said it plans to raise as much as 5 billion euros in a share sale. The company, which has a strong track record as an integrator of acquisitions, is also expected to use its A- credit grade to tap the debt market.

The deal will also be a big undertaking for DSV in other ways. It will inherit about 73,000 employees of the DB Schenker business — roughly the same number of workers it already has.