DSV Completes Acquisition of Schenker, Creating Logistics Giant

 

Effective Wednesday, logistics giants DSV and Schenker have merged into one company under the DSV banner. The megamerger reinforces DSV's position as a leader in global logistics, with 160,000 employees and about $46 billion in annual revenue. 

"With this acquisition, we have become a world-leading player in global transport and logistics, at a time when global supply chains are in focus more than ever before," said DSV CEO Jens H. Lund. "By combining the two companies, we will create a unique flexible platform for long-term financial growth."

DSV bought German competitior Schenker from Deutsche Bahn in September 2024 for $16 billion, the largest transaction in DSV's history. The acquisition gives DSV an even greater presence in the German freight market, including maritime, road, rail and air cargo. At the time of the purchase announcement last year, DSV said that it planned to grow its German business so much that the combined entity would have more employees within Germany than both firms did separately. 

The combined firm is emphasizing business continuity, and it seeks to retain as many existing customers from Schenker as possible. 

"DSV is committed to a smooth transition and will approach the integration with due respect and careful consideration for customers, employees and stakeholders," the firm said. "During the integration process, it is a key priority to avoid disruptions and retain a high service level for our customers."

For DSV, the acquisition comes with an immediate upside. It has updated its earnings outlook to expect an additional $600 million in EBIT this year (on top of its previously-predicted earnings range) from Schenker's operations. However, given the exceptional uncertainties in the global trade landscape, the company cautioned that unforeseen changes could affect its full-year results for 2025. 

DSV added that expects no material contribution to its finances from Saudi Arabia's troubled NEOM project in 2025. The logistics company is a leading partner in NEOM, a futuristic greenfield city which has been quietly scaled back over the past year. 

Top image: Hjart / CC BY SA 4.0