Private Equity Titans and Shipping Giants Eye DB Schenker: A High-Stakes Pursuit
DB Schenker, a prominent German forwarding and logistics company, has attracted bids from major shipping and logistics giants, as well as a private equity consortium, according to a report by Bloomberg. Leading the private equity bids are CVC Capital Partners and Carlyle Group, who have offered approximately €14 billion.
Competing with them are industry heavyweights DSV, AP Moller Maersk, and Mediterranean Shipping Company (MSC). Insiders suggest that these logistics companies have been less aggressive on price compared to the private equity consortium. Interest in DB Schenker has come from around 20 parties, with other potential bidders including UPS, DP World, Saudi shipping company Bahri, and Abu Dhabi Ports owner ADQ. However, Bloomberg reports that it remains unclear whether Bahri and ADQ have pursued a bid, and there has been no mention of UPS and DP World submitting offers.
Vincent Clerc, CEO of Maersk, commented on the company’s evolving stance regarding a potential bid for DB Schenker. Highlighting the logistics sector’s resilient earnings post-Covid and changing perceptions among shippers about carriers owning forwarders, Clerc cited CMA CGM Group’s ownership of CEVA Logistics as an example. “Our strategy is very clear, we need to diversify our revenue streams and our earning streams towards the more stable and less volatile part of the supply chain, which is pretty much anything outside ocean/2PL,” he said. “In that respect, having something like a Schenker coming on the market is definitely something that Maersk cannot simply say we are not even going to look at.”
Meanwhile, DHL Group has confirmed it is not in the running to acquire DB Schenker, dispelling much speculation about potential buyers. Deutsche Bahn officially announced the sale of DB Schenker at the end of last year, following a year of deliberation.
Interested parties must explain their interest in DB Schenker and provide initial insights into their plans for the company if they win the contract. Sales documents indicate that a complete sale is preferred, though partial sales will also be considered.
If Maersk were to secure the deal, it would position the Danish company close to the top three airfreight forwarders. Conversely, a successful bid by DSV would make it the world’s largest airfreight forwarder, currently ranked third, with DB Schenker in fourth place.