Reports: DSV outlines job and investment plans if it lands DB Schenker
04 / 09 / 2024
Photo: DB Schenker
DSV has reportedly outlined how it would protect jobs and invest in DB Schenker following a leading German union expressing concern over job losses if the Danish forwarder is successful in its takeover bid.
Last week German trade union Ver.di is said to have written to the Deutsche Bahn board suggesting its research showed more than 5,000 extra jobs would be lost if the Danish forwarder successfully acquired DB Schenker due to plans to split the company into three entities.
However, DSV has said it aims to invest around €1bn into the forwarder within three to five years to make the business more profitable, according Reuters.
Individual parts of the Deutsche Bahn-owned freight forwarding subsidiary would not be sold post-acquisition, while DSV and DB Schenker would employ more people in Germany than currently and employment guarantees would be in place for two years after the expected completion of the sale in 2025, DSV said, according to sources known to Reuters.
DSV and a CVC-led private equity consortium are the only remaining bidders left in the competition to buy DB Schenker and have reportedly individually put in binding bids of around €14bn.
As well as a bid for €14bn, the CVC-led group has simultaneously discussed an offer of as much as €16bn for DB Schenker that could see the German government reinvesting about €3bn for an approximately 25% stake in the forwarder.
Ver.di, which outlined its findings in a letter to the Deutsche Bahn board, has reportedly given its backing to the CVC-led consortium over fears of job losses should DSV be successful.
In June, Deutsche Bahn narrowed the number of potential buyers of DB Schenker down to four bidders. As well as DSV and CVC, the contenders included Maersk and Saudi shipping company Bahri, but both have since dropped 0ut of the running.
Deutsche Bahn announced that DB Schenker was officially up for sale in December 2023 after spending a year mulling its options.
The forwarding giant is being sold by Deutsche Bahn as it looks to reduce debts.
Air Cargo News sister title DVZ reported earlier this year that Deutsche Bahn had asked interested parties to demonstrate their experience with logistics M&A deals of this size and that they have the appropriate financial resources.
They must also explain what interest they have in Schenker and give an initial insight into their plans for the company if they were to win the contract.
The sales documents show that a complete sale is still the preferred option, although interest in less than 100% of the shares would be considered, so a partial sale is not completely ruled out either.
