2024-09-14 01:19:33
Deutsche Bahn is selling its logistics subsidiary Schenker. The billions in proceeds will be used to reduce the company’s high level of debt.
The Danish transport company DSV is taking over Deutsche Bahn’s logistics subsidiary, DB Schenker, for 14.3 billion euros. Both sides announced this on Friday. The transaction is expected to be completed in the course of next year; this requires the approval of the Deutsche Bahn supervisory board and the federal government. According to the information, the commitments to protect jobs will apply until 2027. Schenker employees recently demonstrated in several cities to keep their jobs.
CEO Richard Lutz explained the sale by saying that Deutsche Bahn wants to focus on the public welfare-oriented rail infrastructure in Germany as well as climate-friendly passenger and freight transport in Germany and Europe. “At the same time, the reduction in debt makes a substantial contribution to the financial viability of the group.”
DB Schenker, with its headquarters in Essen, says it has around 72,700 employees in more than 130 countries, making it one of the world’s leading logistics service providers. Including expected interest income until the sale is completed, the deal is worth 14.8 billion euros, the railway announced. The sale is intended to significantly reduce debt. Railway boss Lutz announced that the focus of the next three years will be on the structural restructuring of the infrastructure, railway operations and profitability.