What has been called the logistics deal of the decade has now been finalised. Denmark’s DSV has officially acquired DB Schenker from Deutsche Bahn in a transaction valued at €14.3 billion. The sale transforms DSV into the world’s largest logistics company, marking a major shift in the global supply chain landscape. For DB, the deal provides urgently needed capital as it grapples with significant debt and mounting losses across its rail operations.
The deal with DSV could not have come too soon for the troubled German rail operator. DB’s total debt stood at €32.6 billion at the end of 2024. The Schenker sale won’t erase the shortfall, but it will make a significant dent. Without its flagship logistics arm, the German state-owned group will double down on core rail business, particularly the company’s “S3” infrastructure renovation strategy. But the trade-off is significant. DB is parting ways with its most valuable and profitable division at a time when the rest of the group is under financial pressure.
Reliable and agile global network
To finance the Schenker acquisition, DSV is drawing on multiple channels. A large-scale bond issuance was planned for late 2024, which will account for a substantial portion of the purchase price. The company has also tapped equity markets. They have raised €5 billion from institutional investors, as well as additional bank lending. DSV’s CFO Michael Ebbe has confirmed that the bulk of funding will come from bonds and credit facilities, reflecting the group’s confidence in long-term gains and profitability from their acquisition.
“With the completion of the acquisition of Schenker, we have reached a milestone in the history of DSV,” said Jens Lund, CEO of DSV. “We have been looking forward to completing the transaction. With this acquisition, we become a world-leading player in global transport and logistics, at a time when global supply chains are more in focus than ever before, and our customers need a reliable and agile global network of services and products. By combining the two companies, we will create a unique, flexible platform for long-term financial growth to the benefit of our customers, employees, shareholders and other stakeholders.”
Cost cutting and fundraising
Losses in 2024 paint a troubling picture. DB posted an operating loss of €333 million, with DB Cargo performing even worse, losing €357 million over the same period. The rail freight arm is under heavy scrutiny, especially following EU pressure to turn a profit by 2026. In response, DB Cargo has launched a major restructuring process that includes cost-cutting, job reductions, and a review of underperforming services. The process includes the wide-ranging “S3” infrastructure renewal project.
The management of Deutsche Bahn has called the deal the largest corporate transaction in its history. “The sale of Schenker will reduce complexity for DB and allow us to fully focus on our core business,” said Dr. Richard Lutz, Chairman and CEO of DB. “Over the next three years, we will turn our infrastructure, rail operations and profitability around. The acquisition by DSV will give DB Schenker a new owner that promises a unique market position and opportunities for international growth.”
The sale was controversial
The official decision to sell Schenker came in December 2023, and DSV was chosen as the buyer in September 2024. The Danish suitors outbid a powerful consortium led by CVC Capital Partners, Carlyle Group, and the Abu Dhabi Investment Authority. For DB, the sale was viewed as a financial necessity to stabilise the group’s balance sheet. However, the sale was not universally popular. Germany’s powerful rail union EVG, which has two seats on DB’s supervisory board, opposed the deal. They argued that DB Schenker and DB Cargo should have been brought closer together, not split apart.
Meanwhile, others in the German transport sector are focused on what comes next. Rail freight association Die Güterbahnen has called for proceeds from the sale to be funnelled directly into rail infrastructure upgrades, rather than absorbed into DB’s operating budget. The question of how the funds are allocated remains politically sensitive as Germany seeks to modernise its rail system and reduce reliance on road transport.
From DSV’s perspective, the acquisition represents a significant step forward. With over 70,000 employees, Schenker will nearly double DSV’s workforce to around 160,000 people globally. Financial analysis makes the deal look like a sound investment. Schenker has long been DB’s most profitable division, and DSV projects combined annual revenues exceeding €40 billion. By the end of 2028, the Danish company expects cost and operational synergies worth €1.2 billion annually. Integration, which will mean the demise of the DB Schenker brand, is already underway.
Additional reporting by Marco Raimondi at our sister service RailFreight.com.