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DSV snaps up DB Schenker for EUR 14.3 bn: Danish logistics management giant DSV has finalized an agreement to acquire Deutsche Bahn’s logistics unit Schenker for EUR 14.3 bn in an all-cash transaction, the Financial Times reported on Friday. The acquisition is set to make the company the world’s largest freight-forwarder, doubling DSV’s revenues to EUR 39 bn and increasing its workforce to 147k employees.
What we know: DSV intends to finance the acquisition through debt and by selling a share-stake of up to EUR 5 bn, the FT writes. The agreement, contingent on regulatory approval, is expected to close in 2Q 2025. Deutsche Bahn’s supervisory board and Germany’s transport ministry are expected to approve the agreement in the coming weeks.
Tough competition: DSV was competing for the firm against a rival bid from an Abu Dhabi Investment Authority-backed consortium, which also includes CVC and Singapore’s GIC.
REMEMBER- Saudi shipping firm Bahri dropped out of the race to snap up Schenker in July. Danish shopping firm Maersk dropped out of the race earlier the same month.
DHL Express is investing over EUR 100 mn to boost shipping capacity in 4Q 2024 in preparation for a “healthy surge in demand for express services” during the end-of-year peak season, CEO John Peason said in a statement (pdf) published on Thursday. The shipping giant will integrate eight new Boeing 777 freighters into its fleet to expand its aviation capacity on trans-Pacific and intercontinental routes between Asia and Europe. The firm is also boosting its handling and sorting capabilities in its ground network.
Almost 42% of crude production and over 52% of natural gas output in the US Gulf of Mexico due to shutdown after Hurricane Francine’s landfall in Louisiana, Reuters reported on Friday, citing the US Bureau of Safety and Environmental Enforcement (BSEE). The Gulf of Mexico — which accounts for 15% of overall domestic oil production and 2% natural gas output — recorded 732.3k barrels per day of oil and 973.2 mn cubic ft of natural gas still offline two days after Francine made landfall on Wednesday, up from a loss of 730k barrels and natural gas to 992 mn cubic ft on Thursday, the newswire adds.
OTHER STORIES WORTH KNOWING THIS MORNING-
- Great Eastern Shipping renewing its fleet: India’s Great Eastern Shipping is acquiring five second-hand vessels for a total of USD 160 mn as part of its fleet renewal program where it will replace 20-year-old vessels. The firm has sold six older ships for around USD 100 mn. (Economic Times)
- Flights canceled at Charleroi Airport due to strike: Belgium’s Charleroi Airport canceled all flights on Thursday and Friday due to a joint union strike. At least 87 flights were canceled on Friday alone. (Reuters)
- China Development Bank makes a hefty Airbus order: China Development Bank Financial Leasing’s aviation unit is purchasing 80 Airbus A320neo aircraft to boost its aviation capacity and fuel efficiency, with delivery expected to begin in 2030. The investment ticket has not been not disclosed. (Reuters)
- UK cracks down on Russia’s ghost fleet: The UK has placed sanctions on 10 additional Russian ships as part of an effort to crack down on Russia’s use of a so-called ghost fleet to circumvent Western sanctions on trading Russian oil. All 10 vessels were previously overseen by UAE firm Oil Tankers SCF MGMT FZCO, which was used by Russia shipping company Sovcomflot. (Reuters)
