CVC and Abu Dhabi, Singapore Funds Make Around $15.6 Billion Joint Bid for DB Schenker

By Adam Whittaker

A consortium formed by CVC Capital Partners, Abu Dhabi Investment Authority and Singapore's sovereign-wealth fund GIC made a bid for Deutsche Bahn's logistics division Schenker, which values the business around 14 billion euros ($15.56 billion), according to a person close to the deal.

German state-owned rail-and-logistics operator Deutsche Bahn started the sale process for its Schenker unit in December 2023.

The consortium's bid includes an option for the German government to reinvest in the company via a minority stake and would increase the value of the business to around 16 billion euros, a person with knowledge of the offer said.

German newspaper Handelsblatt first reported that CVC and Danish transport firm DSV submitted offers for Schenker and that the deal could be valued at around 15 billion euros.

Deutsche Bahn aims to reduce debt with proceeds from a potential sale, which would also allow it to focus on its core rail business, the company said in December.

In early July, Danish shipping giant A.P. Moeller-Maersk withdrew from the bidding process after in-depth due diligence identified integration challenges, the company said.

Schenker generated revenue of 9.41 billion euros in the first half of the year, and made an adjusted operating profit of 520 million euros. The business employs more than 76,000 people and is present in more than 130 countries, according to Deutsche Bahn.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

August 23, 2024 09:25 ET (13:25 GMT)

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