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CVC and competing DSV offer matching EUR 14 bn bids to snag DB Schenker: A consortium comprising CVC Capital Partners, The Abu Dhabi Investment Authority (Adia), and Singapore’s GIC, submitted a EUR 14 bn bid to acquire DB Schenker, the logistics subsidiary of Germany’s Deutsche Bahn, alongside competing bidder Danish transport company DSV, Bloomberg reported on Friday, citing sources familiar with the matter.
The CVC consortium has more to offer: The private equity firm separately submitted another option for the German government to reinvest in the logistics firm for a 25% stake, potentially taking the value of the bid to EUR 16 bn, according to the sources. The Adia-backed consortium intends to list DB Schenker on the Frankfurt Stock Exchange, Reuters reported on Friday, citing people in the know. CVC has also pledged to keep the company’s headquarters in Germany and preserve the DB Schenker brand. In contrast, a competing bid from DSV could lead to potential layoffs and the closure of some locations, sources said.
Right on time: The two parties were expected to submit their final bids by the end of August after Deutsche Bahn shortlisted them following shipping giant Maersk’s withdrawal from the race. Deutsche Bahn — which kicked off the sale process in December — is expected to close the transaction in 2025.
What’s next? Deutsche Bahn is currently reviewing the offers and will discuss CVC’s offer with the German government, with a decision expected in the coming weeks. The railway company and the government are likely to renegotiate the terms of the final bids with the two consortiums, a source told Bloomberg. “The most important criterion remains that a sale must be economically advantageous for the railway,” a spokesperson for Deutsche Bahn told Reuters.
The story also got ink in the Wall Street Journal
