GERMAN Rail’s (DB) profitable logistics subsidiary DB Schenker could be sold in the second half of this year, according to recent news agency reports. These suggest potential buyers include private equity firms Advent, Bain, Carlyle Group and CVC. Fellow logistics operators DSV, Maersk and UPS are also named as possible purchasers.
The number of parties interested in the sale is now believed to be around 10, down on the reports earlier in the year that at least two dozen buyers were in the frame.
Investors from the Gulf region are reportedly looking at a potential deal, including Saudi national shipping company Bahri and Abu Dhabi-based ADQ, while Saudi Arabia's sovereign wealth fund (PIF) is believed to be involved in DSV’s possible offer.
However, several companies have recently stated that they will not bid, including Kuehne+Nagel and Deutsche Post subsidiary DHL, which ruled itself out on March 6. DHL CEO, Mr Thomas Meyer, told the media that his company would need to see a “very substantial upside” when making any acquisition.
DB Schenker is widely considered to be the most profitable part of DB’s operations and a sale price of around €20bn was suggested in the German media when details of the sale were officially announced in December. Since then, however, the estimated sale price has dropped to around €15bn.
In 2022, DB Schenker reported Ebit of €1.84bn on a turnover of €27.6bn. Forecasts for this year are lower, but remain healthy, with media reports suggesting an operating profit of €1.1bn is expected on sales of around €19bn.
These reports also indicate that parties interested in purchasing DB Schenker will need to submit initial offers, including the proposed purchase price, by the end of this month, when a shortlist will be drawn up. A preferred bidder could be announced in the second half of this year, ahead of the sale formally concluding in 2025.
DB is conducting a disposal programme in order to reduce its debt burden as it focuses on its core domestic market.
