DSV snaps up Schenker for EUR14.3bn, reshapes logistics landscape

By Transport Intelligence

In what is arguably the most important news of 2024, DSV has signed an agreement to acquire Schenker from Deutsche Bahn, with the deal valued at EUR14.3bn. Based on 2023 numbers, the combined company will have an expected revenue of EUR39.3bn, with nearly 150,000 employees across more than 90 countries.

DSV is the second largest freight forwarder globally, according to 2023 data, and if approved, the deal will make DSV the largest forwarder by some margin. It will have freight forwarding revenues of EUR21bn with an 11.1% global market share (based on revenue). That would put them ahead of K+N and DHL with 8.4% and 6.1% market shares respectively.

It also adds significantly to DSV’s road freight business in Europe, where – pre-acquisition – it ranked fourth with EUR4.3bn revenues in 2023. The combined business would have EUR12.2bn in revenue and a 2.8% market share. That will put them well ahead of DHL Freight and Dachser, with 1.2% and 1% market shares respectively.

Whilst both companies have contract logistics operations, neither are market leaders; but the deal doubles DSV’s revenues in this key market from EUR3.1bn to nearly EUR6bn.

The strategic rationale behind the acquisition is clear: it significantly enhances DSV’s global network, expertise, and competitiveness across all three of its divisions – Air & Sea, Road, and Solutions. This move aligns with DSV’s track record of growth through strategic acquisitions, following its successful integration of companies like UTi, Panalpina, and Global Integrated Logistics in recent years. Schenker’s established rail logistics network and its diverse global operations will be a critical asset in DSV’s expansion into more integrated logistics solutions.

This acquisition also positions Germany as a crucial market for DSV, significantly influencing the company’s future structure. Key operational functions will be retained within Germany, with the Schenker facility in Essen maintaining its importance. DSV foresees substantial growth in the German market, committing to a €1 billion investment plan over the next 3-5 years. This financial commitment aims to drive long-term expansion, create new job opportunities, and foster the development of cutting-edge, employee-friendly work environments.

The success of this acquisition will largely depend on the integration process. According to Reuters, other bidders pulled out of the bidding process over concerns that its IT system needs significant investment. DSV has emphasized its commitment to a smooth transition, prioritising service continuity for Schenker’s customers and considering employee and stakeholder interests.

The proposed acquisition is conditional on obtaining customary regulatory clearances, which are expected to be secured in Q2 2025.