Railway corporation transfers ownership of its logistics division, DB Schenker, to Denmark.
The rail corporation aims to concentrate on its primary operations and is advocating for the restoration of numerous kilometers of rail tracks. To accomplish this, the financially strained organization is earning billions by selling off its profitable subsidiary, DB Schenker. The issue lies in the fact that DB Schenker has consistently been profitable.
German Railways' logistics division, DB Schenker, is being obtained by Denmark's transport giant, DSV, for 14.3 billion euros. Both parties have confirmed this transaction, with completion anticipated within the next year, contingent upon approval from the railway regulatory body and the federal government. Job security will be ensured until 2027, according to the statements.
Recently, Schenker workers in various cities have staged protests for the preservation of their positions.
The sale aims to enable the company to focus on community-oriented rail infrastructure in Germany and eco-friendly passenger and freight transport in Germany and Europe, as explained by CEO Richard Lutz. In addition, the reduction of debt significantly contributes to the financial stability of the corporation.
DB Schenker, located in Essen, boasts over 72,700 employees in over 130 countries and is one of the premier logistics service providers worldwide. Including anticipated interest payments during the sale process, the business is valued at 14.8 billion euros, the railway corporation announced. The sale is intended to significantly reduce the company's debt. In the following three years, CEO Lutz announced that infrastructure rehabilitation, rail operations, and profitability would be the primary focuses.
DSV CEO Jens H. Lund stated, "We have a clear plan to become the leading transport and logistics company alongside Schenker." As the new owner, DSV intends to invest around one billion euros in Germany over the next three to five years, a move that is also expected to create jobs in Germany.
The acquisition of Schenker by DSV was hinted at in recent days. According to sources, DSV and financial investor CVC were the last remaining bidders in the competition. With the acquisition, DSV and Schenker are expected to generate a combined revenue of 293 Danish crowns (approximately 39 billion euros) and employ around 147,000 people in over 90 countries.
The Commission expresses concern about the potential impact of DB Schenker's sale on job security for its workers. Following the approval of the sale, The Commission will closely monitor the compliance of DSV with the commitments made regarding employment and investment in Germany.
