Saudi Arabia’s national shipping carrier, Bahri, has withdrawn from the competitive bidding process to acquire Deutsche Bahn’s logistics subsidiary, DB Schenker. This move leaves three remaining contenders: Danish transport giant DSV, a consortium led by CVC Capital Partners, and the Danish shipping company Maersk.
Bahri’s exit is a significant development in the sale process of DB Schenker, which Deutsche Bahn initiated to reduce its substantial debt, estimated at around €34 billion. Bahri was considered a strong contender, and its departure means that Deutsche Bahn may need to adjust its expectations on the sale proceeds. Some non-binding bids had reportedly exceeded €15 billion, but with Bahri out, the final sale price might fluctuate.
Deutsche Bahn plans to finalize bids for DB Schenker by the end of July. The remaining bidders now have the opportunity to make binding offers. The sale process is progressing as scheduled, with Deutsche Bahn aiming to complete the transaction by 2025. This timeline is crucial for the state-owned rail operator, which is looking to streamline operations and reduce financial liabilities through this high-profile divestiture.
DB Schenker, a major player in the logistics sector, employs over 70,000 people across approximately 130 countries. The company is integral to Deutsche Bahn’s operations but has been marked for sale as part of a broader strategy to focus on core rail services and improve financial stability.
The departure of Bahri adds a layer of complexity to the ongoing negotiations. The Saudi shipping firm’s decision not to proceed may have been influenced by several factors, including strategic realignments or financial evaluations. As the bidding process enters its final stages, the focus now shifts to DSV, CVC’s consortium, and Maersk, all of whom remain committed to acquiring the logistics giant.
Deutsche Bahn’s decision to sell DB Schenker is driven by the need to reduce debt and streamline operations amid a challenging economic environment. The sale is seen as a pivotal move to ensure the company’s long-term sustainability and competitiveness in the global transportation market.
Bahri’s withdrawal reshapes the competitive landscape for DB Schenker’s acquisition. The final outcome of this high-stakes sale will significantly impact Deutsche Bahn’s financial strategy and the future dynamics of the global logistics industry.
Sources:
– Yahoo Finance
– Gulf Business
– RailFreight
