The €14bn deal still has to be approved by the supervisory board of Germany’s state railway.
ADVERTISEMENTDanish firm DSV is in advanced discussions to buy Schenker, the logistics unit of German state railway Deutsche Bahn (DB) – according to sources at the railway and the government.
DSV could finalise the agreement, worth €14bn, by the end of this week.
The deal would still require the approval of DB’s supervisory board, which is primarily made up of government and union representatives.
The news will come as a disappointment to investor CVC Capital Partners, a firm also vying to buy DB Schenker.
According to Bloomberg, CVC sent letters to DB’s management and supervisory boards on Monday, hoping to win them over at the last minute.
CVC’s proposed deal, according to sources, would allow DB to retain a 24.9% stake in the Schenker unit for an investment of €1bn.
CVC said this could deliver returns of €2bn to €2.5bn to DB.
« In the increasingly challenging economic and geopolitical situation, Germany cannot afford to lose another domestic and strategically important industrial champion, » said CVC.
Labour union Verdi is notably backing CVC’s deal, although it is allegedly lower than DSV’s offer.
A takeover by DSV would nonetheless lead to more job cuts, labour representatives argue.
DB is looking to sell Schenker, its most profitable division, to unlock investment for its domestic passenger business.
The railway is also looking to reduce its €30bn of debt.
DSV and CVC declined to respond to Euronews’ request for comment.
A DB spokesperson said in an emailed statement: « The sales process for DB Schenker is confidential. Generally, we do not comment on bidders, details of discussions or the amount of bids. »
« The main criterion remains that a sale must be economically advantageous for Deutsche Bahn. A decision on the sale of DB Schenker will be presented to the Supervisory Board of DB AG for final resolution at the end of the process. It also requires the approval of the Federal Government in accordance with the Federal Budget Code (BHO). Deutsche Bahn AG will provide information on the outcome in due course. »
