DB Schenker reported an operating profit of €520 million for the first half of 2024, down 17% from H12023
Danish transport group DSV and a consortium led by CVC Capital Partners separately put in binding bids that valued Deutsche Bahn’s logistics unit DB Schenker at about €14 billion ($15.6 billion).
The CVC-led group also simultaneously tabled an offer of as much as €16 billion that would see the German government reinvesting for a roughly 25 percent stake in DB Schenker, the Bloomberg report added. “The buyout firm pledged to keep the DB Schenker brand as well as its German headquarters in its proposals.”
DB Schenker reported an operating profit of €520 million for the first half of 2024, down 17 percent from H12023 profit of €626 million despite the further normalisation of freight rates in air and ocean freight. Total turnover was down seven percent at €9.4 billion compared to €10.1 billion in H12023.
“Thanks to a successful efficiency programme, DB Schenker has good opportunities to leverage additional profit potential in the future too,” says Levin Holle, Chief Financial Officer, DB Group. The process for a possible sale of up to 100 percent of the shares in DB Schenker continued as planned in the first half of 2024, the management said in its update while announcing the results. “The outcome is still open. According to the resolution of the Supervisory Board, proceeds from a possible sale of DB Schenker should remain entirely in the DB Group and lead to a significant reduction in the DB Group’s debt. A sale will only take place if it is economically advantageous for the DB Group.”
DSV and CVC have been seen as the leading contenders for the Deutsche Bahn’s logistics unit after Maersk dropped out of the running in July. “CVC, which has teamed up with Singapore wealth fund GIC and the Abu Dhabi Investment Authority, placed an offer of around €14 billion in an earlier round of bidding.” 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.
