Maersk shares jump on decision to scrap plans for DB Schenker takeover

By Louis Goss

Maersk decides to withdraw from the sales process after identifying challenges with integrating the German logistics company

A.P. Moller-Maersk shares jumped on Monday after the Danish shipping giant confirmed it had scrapped its plans to acquire German logistics company DB Schenker in a takeover deal that reportedly valued the firm at EUR15 billion ($16 billion).

In a statement, Maersk CEO Vincent Clerc said the company had decided to withdraw from the sales process after carrying out an "in-depth" review into the logistics business, which is owned by Germany's state-run railway operator Deutsche Bahn.

Maersk's review "identified areas of challenges from an integration perspective and ultimately, we concluded that acquiring DB Schenker would not be the right thing to do for our business at this time," Clerc said.

Shares in A.P. Moller-Maersk (DK:MAERSK.B), listed on the Copenhagen stock exchange, jumped 6% on Monday, having lost 1% in the year to date.

Deutsche Bahn started looking at plans to sell off DB Schenker in March, with a view to raising up to EUR15 billion to help pay down its EUR30 billion in debts, according to Reuters. The state-owned rail company had acquired DB Schenker for around EUR2.5 billion in 2002.

"Our investigation confirmed DB Schenker as an interesting company with a comprehensive portfolio in the logistics market and with further potential to unlock for the future," Clerc said, as he confirmed that Maersk will continue looking at other potential acquisitions.

Maersk has in recent years completed a series of acquisitions in a push to capitalize on the growth of the e-commerce sector by snapping up more localized delivery businesses using the record profits it generated during the COVID-19 pandemic.

"Our strategic focus remains unchanged; acquisitions continue to be an important lever to scale our Logistics business. We are committed to continue to grow in Europe, including Germany, and we see our organic growth in logistics gaining momentum," Clerc said in the statement.

"We are executing our growth plans in the Terminals business and implementing a new Ocean network," he said. "This is where our focus is, and we are fully dedicated to further unfolding all the potential that we see."

In May, Maersk reported a 19% drop in its first-quarter revenue, to $8 billion, that led to a 72% crash in its earnings before interest, tax, depreciation and amortization, as a result of a major slowdown in the global shipping market.

-Louis Goss

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07-01-24 0915ET

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