Kingdom of Saudi Arabia-based Bahri has dropped its bid for German rail operator Deutsche Bahn’s logistics unit Schenker, narrowing the field to DSV and CVC, two entities familiar with the sale, Reuters stated. The departure means state-owned Deutsche Bahn, which put Schenker up for sale to reduce its debt last year, needs to lower its sight on proceeds because Bahri’s offer had been the highest at more than US$16.4 billion. CVC has been pursuing the business in a consortium with Abu Dhabi Investment Authority (ADIA) and investor GIC, sources said. The global 3PL market size is estimated to grow by US$500 billion to 2027, driven by e-commerce and integrated shipping services, according to research group Technavio. High operational costs and competitive pricing are seen as a challenge for the sector. Schenker competes with AP Moller Maersk, Baltic Logistics Group, Kuehne&Nagel and DHL, among others. Schenker is present in around 130 countries worldwide, including about 15,000 in Germany.
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