Deutsche Bahn Group (DB) is preparing to sell its freight forwarding subsidiary DB Schenker to focus on its core rail business. In the first half of 2022, DB Schenker generated a record profit of 1.2 billion euros.
Railway group Deutsche Bahn said on Thursday it had assigned its management to review and prepare a case for the sale of up to 100% of its stake in DB Schenker, the major air freight forwarder. world fourth.
“Decisions on the specific start of the divestment process and the possible form of sale will be made separately at a later date,” Deutsche Bahn said.
The Group argues that selling the forwarding business will allow it to focus more on its Strengths Rail Strategy and core business.
Deutsche Bahn explains: “The objective of the Group strategy, launched in 2019, is to shift traffic to eco-friendly rail, in both passenger and freight transport, and to expand the railway infrastructure in Germany”.
Deutsche Bahn added that although DB Schenker has achieved record results in recent times, in the medium term the company will need greater financial resources and more independence to make international acquisitions. to maintain and enhance its market position.
“For this reason, a resale can open up new opportunities for DB Schenker in terms of growth and development,” said Deutsche Bahn.
“The company’s global market leadership position makes it attractive to buyers and investors,” added Deutsche Bahn. “Given the economic challenges facing the world and the current uncertainty in capital markets, DB does not want to rush to sell DB Schenker.
“The specific start date of the divestment process depends on the general situation and has not been decided. The sale will only take place if it provides a financial benefit to the DB Group over keeping DB Schenker in the Group.”
In the first half of 2022, DB Schenker generated €1.2 billion in operating profit, the best mid-year result in the company’s 150-year history.
The company provides land, air and sea freight services and employs 76,100 people across 1,850 offices in more than 130 countries.
The planned sale doesn’t come as much of a surprise, there’s been speculation for a number of years that Deutsche Bahn isn’t sure what it wants for its freight forwarding subsidiary with rumors of a resale popping up recently. most in September.
The ongoing trend of market consolidation in the forwarding sector has caused the company to lose its top 3 spot to the fast-growing Danish forwarder DSV in recent years. Meanwhile, the gap between market leader Kuehne+Nagel and second place DHL Global Forwarding has widened.
DB Schenker will be transferred to a potential buyer if Deutsche Bahn achieves a financial interest in the DB Group, and DSV is one of the most likely candidates.
Danish forwarding company DSV has grown rapidly in recent years through acquisitions and has previously expressed interest in DB Schenker if it were to go up for sale.
Based on 2021 figures, if DSV buys DB Schenker, it will become the largest air freight forwarder in the world, surpassing both K+N and DHL with an annual volume of about 2.5 million tons.
Source: Phaata.com
