CVC and DSV Compete in $15.6B Bid for DB Schenker Unit
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Danish transport group DSV A/S and a consortium led by CVC Capital Partners Plc separately put in binding bids that value Deutsche Bahn AG’s logistics unit at about $15.6 billion, according to people familiar with the matter.
Separately, the CVC-led group also tabled an offer of as much as $17.4 billion that would see the German government reinvesting for a roughly 25% stake in DB Schenker, the people said, declining to be identified because the information is private. The buyout firm pledged to keep the DB Schenker brand as well as its German headquarters in its proposals, the people said.
Deutsche Bahn is currently evaluating the final offers and needs to discuss with the government on CVC’s proposal, the people said. It’s likely that Deutsche Bahn and the government would re-negotiate the offers with the bidders, they said, adding that no final decision has been made.
Representatives for CVC, Deutsche Bahn and DSV declined to comment.
RELATED: DSV Orders 300 Electric Trucks in Major Volvo Deal
Shares of DSV extended their decline to as much as 3.6% following the Bloomberg News report on Aug. 23.
Deutsche Bahn announced in December it will explore a sale of DB Schenker. A deal would help the German state-owned firm slash debt and modernize its domestic railroad operations, a key government priority. DSV and CVC have been seen as the leading contenders for the Deutsche Bahn’s logistics unit after AP Moller-Maersk A/S dropped out of the running in July, Bloomberg News has reported. CVC, which has teamed up with Singapore wealth fund GIC Pte and the Abu Dhabi Investment Authority, placed an offer of around $15.3 billion in an earlier round of bidding, people familiar with the matter have said.
A potential divestment of DB Schenker could rank as one of the biggest European transactions this year and comes at a time large corporations on the continent are looking to streamline their operations. Sanofi SA has been collecting bids for its $20 billion consumer health division while also studying a possible listing of the unit, Bloomberg News reported in June.
DSV A/S (North America) ranks No. 10 on the Transport Topics Top 100 list of the largest logistics companies in North America. It ranks No. 14 on the TT Top 50 list of the largest global freight carriers.
DB Schenker ranks No. 25 on the TT Top 100 list of logistics companies. Maersk ranks No. 28 on that list and No. 5 on the Top 50 list for global freight carriers.
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