DSV to Become the World's Largest Logistics Company by Agreeing to Acquire Schenker for €14.3 Billion
Copenhagen (Reuters) – DSV is set to become the world’s largest logistics company by acquiring Schenker, the logistics division of German state-owned railway operator Deutsche Bahn, for €14.3 billion ($15.85 billion).
DSV, a logistics firm that started as a small business founded in 1976 by ten truck drivers, has rapidly grown through a series of successful acquisitions in the competitive logistics market – some of which were even larger than the company itself.
What is DSV?
DSV began with ten truck drivers in 1976 and now employs over 75,000 people. Post-merger with Schenker, the company will have 147,000 employees and a revenue of 293 billion Danish Kroner (approximately $43.52 billion) based on 2023 performance, surpassing Danish pharmaceutical giant Novo Nordisk.
DSV handles everything from transporting single pallets to managing entire supply chains for multinational corporations.
The company was founded by Leif Tullberg and nine other independent truck drivers who saw a market opportunity as intermediaries in the shipping industry, helping businesses transport goods worldwide with minimal commission. The business operates on a light asset model without owning ships, planes, or trucks itself.
What Market Share Will the Expanded Company Have?
DSV states that its acquisition of Schenker will create the world’s largest logistics company, surpassing Germany’s DHL and Switzerland’s Kuehne + Nagel in size and revenue. However, the group only holds a 6% to 7% market share in the highly fragmented global logistics market.
It is estimated that the top 20 global logistics companies account for 30-40% of the global market share, with the rest held by local and regional firms.
Research firm Technavio predicts that the global third-party logistics (3PL) market will grow by over $500 billion from 2023 to 2027, driven primarily by e-commerce and integrated transport services.
How Has DSV Grown?
In recent years, DSV has expanded through several acquisitions, including the purchase of US company UTi for $1.35 billion in 2016, Swiss Panalpina for $4.6 billion in 2019, and Kuwait’s Global Integrated Logistics (GIL) for $4.2 billion in 2021.
(Reporting by Jacob Gronholt-Pedersen; Editing by Matt Scuffham and Tomasz Janowski)
Source: Yahoo Finance
