Deutsche Bahn wants to reposition itself and has to pay off some debts at the same time. In order to raise the money, it is now selling a subsidiary.
The Danish transport company DSV is taking over Deutsche Bahn’s logistics subsidiary, DB Schenker, for 14.3 billion euros. Both sides announced this on Friday. The transaction is expected to be completed in the course of next year; this requires the approval of the Deutsche Bahn supervisory board and the federal government. According to the information, the commitments to protect jobs will apply until 2027. Recently, Schenker employees demonstrated in several cities to keep their jobs.
CEO Richard Lutz explained the sale by saying that Deutsche Bahn wants to focus on the public welfare-oriented rail infrastructure in Germany as well as climate-friendly passenger and freight transport in Germany and Europe. “At the same time, the reduction in debt makes a substantial contribution to the financial viability of the group.”
Deutsche Bahn needs restructuring
DB Schenker, with its headquarters in Essen, says it has around 72,700 employees in more than 130 countries, making it one of the world’s leading logistics service providers. Including expected interest income until the sale is completed, the deal is worth 14.8 billion euros, the railway announced. The sale is intended to significantly reduce debt. Railway boss Lutz announced that the focus of the next three years will be on the structural restructuring of the infrastructure, railway operations and profitability.
DSV boss Jens H. Lund said: “We have a clear plan on how we want to become the world’s leading transport and logistics company together.” As the new owner of Schenker, the company plans to invest around one billion euros in Germany over the next three to five years. This will also create jobs in Germany.
Several bidders competed for DB Schenker
The Schenker takeover by DSV had become apparent in recent days. According to sources, DSV and the financial investor CVC were the last remaining interested parties in the bidding war.
According to DSV, DSV and Schenker will have a combined turnover of 293 Danish kroner (around 39 billion euros) and employ around 147,000 people in more than 90 countries.
Note: This post has been updated.
Source: Stern
