Denmark’s Maersk Group announced it will no longer pursue the acquisition of German logistics giant DB Schenker. CEO Vincent Clerc cited integration challenges as the primary reason, stating, “We concluded that acquiring DB Schenker would not be the right thing to do for our business at this time.”
German state rail operator Deutsche Bahn put DB Schenker up for sale last year, attracting interest from several bidders, including Maersk. Maersk had been shortlisted for the final round of bids along with DSV, Bahri, and a consortium led by CVC with the Abu Dhabi Investment Authority and Singapore’s GIC.
DB Schenker is valued between EUR 14-15 billion, with at least one bid exceeding EUR 15 billion. However, this is lower than earlier estimates of EUR 15-20 billion. The acquisition would have been a significant financial strain for Maersk, which reported a drop in cash and cash equivalents to USD 7.3 billion as of March 31, 2024, from USD 11.6 billion a year earlier. The company posted a net profit of just USD 208 million in Q1 2024 and recorded the lowest shipping operating margin among the top 10 major lines.
Maersk has spent over USD 8 billion since 2020 on its integrator strategy, aiming to combine shipping, ports, and logistics for end-to-end services. Despite generating USD 3.5 billion in revenue from its Logistics & Services segment in Q1 2024, the operating profit was only USD 54 million, yielding a 1.5% margin, well below the targeted 6%.
Confirming its initial interest in DB Schenker in February, Maersk emphasized the need to diversify its revenue streams but ultimately deemed the acquisition too risky at this time. Investors appeared to welcome the decision to withdraw.
