Deutsche Bahn officially kicks off DB Schenker sale
German rail operator Deutsche Bahn has officially launched the process to sell its logistics arm DB Schenker. The company said it has laid out “an open and non-discriminatory process for the sale of the shares”. The condition for a sale is that it must have apparent economic advantages for Deutsche Bahn in all respects.
The international logistics market has great potential for long-term growth. DB Schenker has made positive contributions to the economic growth of the DB Group over the years. However, the DB subsidiary will require additional capital and flexibility to continue growing.
The DB Group will keep all the revenue from its sale, most of which will be directed towards reducing its debt. This would significantly speed up Deutsche Bahn’s focus on its core business and the implementation of the Strong Rail strategy. Earlier in September, DB Schenker was valued €12 billion and €20 billion.
Deutsche Bahn has already sold off or made contractual agreements to sell several of its business units in foreign markets and is taking another big step by letting go of DB Schenker. The company aims to help the environment, people, and the economy by significantly increasing the cargo and passenger volumes handled by eco-friendly rail services.
In December 2022, Deutsche Bahn AG’s Supervisory Board instructed DB’s Management Board to investigate and prepare for a possible sale of all its shares in DB Schenker. The final decision regarding the sale of DB Schenker will depend on a separate resolution adopted by Deutsche Bahn AG’s Supervisory Board at the end of the sale process. The process is also subject to general capital market developments.
Only recently, DB Schenker appointed Niklas Wilmking as Global Board Member for Contract Logistics. Wilmking has been working for DB Schenker since 2002 in several management positions, most recently as CEO Asia Pacific. Prior to that he served as Executive Vice President Global Air Freight and in key roles in Germany and the Asia Pacific region such as Managing Director of DB Schenker Vietnam and Vice President Strategic Business Development of DB Schenker Asia Pacific.