Deutsche Bahn’s EXCLUSIVE Schenker logistics business put up for sale – sources

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The logo of Deutsche Bahn is seen on a train at Cologne main station, during a nationwide strike by railway workers, in Cologne, Germany, August 23, 2021. REUTERS/Thilo Schmuelgen

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BERLIN/FRANKFURT, Sept 8 (Reuters) – The German government has reached an agreement in principle with Deutsche Bahn (DBN.UL) to sell the rail operator’s Schenker logistics business, government and government sources told Reuters on Thursday. companies.

State-owned Deutsche Bahn’s supervisory board will approve the sale as soon as possible, potentially this year, the sources said.

Banking sources value Schenker at between 12 and 20 billion euros ($19.97 billion), although valuation calculations are influenced by the state of the global economy and the impact of the war in Ukraine and of the current energy crisis.

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Banks are expected to receive invitations to work on the sale process over the next two months, with a potential date in December ahead of pre-marketing in 2023, a separate source familiar with the process said.

A direct sale and an initial public offering are options, the sources said, adding that there was no time pressure and a sale in 2024 was also a possibility.

The Transport Ministry and Deutsche Bahn declined to comment.

The sale of Schenker became topical after the transition to Germany‘s coalition government, led by the Social Democrats (SPD) of Chancellor Olaf Scholz last year.

The Liberal Democrats (FDP) and the Greens, both junior coalition partners, favor Deutsche Bahn focusing on passenger and freight transport in Germany.

Essen-based Schenker has 75,000 employees worldwide and accounts for more than a third of Deutsche Bahn’s revenue.

In the first half of 2022, the company achieved an operating profit of almost 1.2 billion euros, bringing the entire company back to profitability.

($1 = 1.0013 euros)

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Reporting by Markus Wacket in Berlin and Emma-Victoria Farr in Frankfurt, writing by Madeline Chambers; edited by Matthias Williams and Jane Merriman

Our standards: The Thomson Reuters Trust Principles.

Emma Victoria Farr

Thomson Reuters

European M&A reporting with previous experience at Mergermarket, Bloomberg The Daily Telegraph and Deutsche Presse Agentur.

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