Danish logistics group DSV announced Friday a deal to acquire Schenker, a division of German rail firm Deutsche Bahn, for 14.3 billion euros ($15.8 billion) and create a “powerhouse” in the freight-forwarding sector.
“This is a transformative event in DSV’s history, and we are very excited to join forces with Schenker” DSV chief executive Jens Lund said in a statement.
“With the acquisition we bring together two strong companies, creating a world-leading transport and logistics powerhouse that will benefit our employees, customers and shareholders,” Lund added.
DSV said the deal was its biggest transaction to date.
The combined companies will have 147,000 employees in more than 90 countries and generate revenue of 39.3 billion euros.
DSV said Germany will be a “key market” for the company. It will retain Schenker’s location in Essen and invest one billion euros in the country over the next three to five years.
“Together with DSV, our goal is to transform the industry and build a truly global market leader with joint European roots for the best of our employees and our customers,” Schenker CEO Jochen Thewes said.