(Bloomberg) -- DSV A/S is in advanced talks to acquire Deutsche Bahn AG’s logistics unit, people with knowledge of the matter said, in a €14 billion ($15.4 billion) deal that could rank as one of the largest in the transport industry.
The Danish group has won the support of Deutsche Bahn’s management board over rival bidder CVC Capital Partners, the people said. DSV is now finalizing terms of a deal to buy DB Schenker and could sign an agreement as soon as this week, according to the people, who asked not to be identified because the information is private.
Any deal would still need approval from state-owned Deutsche Bahn’s supervisory board, the people said. The 20-person committee is equally made up of shareholder and labor representatives.
The powerful Verdi labor union has come out opposed to the deal, and although it doesn’t have a seat on the supervisory board, it could try to exert influence on the labor representatives. There’s also a possibility that German politicians could try to scupper a deal.
Shares of DSV jumped as much as 9.7% on Thursday, their biggest gain since April 2021, following the Bloomberg News report.
CVC sent letters Monday to Deutsche Bahn’s management and supervisory boards, pushing it to give full consideration to an alternative offer that it says is superior. The proposal would allow Deutsche Bahn to reinvest €1 billion to keep a stake of up to 24.9%, which CVC says would bring guaranteed proceeds of €2 billion to €2.5 billion.
DSV itself last week committed to limit layoffs to between 1,600 and 1,900 roles at Schenker’s German headquarters, according to a memo seen by Bloomberg News. They also said they won’t reduce blue-collar jobs. Schenker itself is cutting around 800 to 900 jobs in Germany by 2028 under its own restructuring program. That number would reduce DSV’s plans, people familiar with the matter have said.
Representatives for CVC, Deutsche Bahn and DSV declined to comment.
--With assistance from Aaron Kirchfeld, Dinesh Nair and Sara Sjolin.
(Updates with DSV share moves in fifth paragraph.)
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