Deutsche Bahn announced that it has officially launched the sale process of DB Schenker

The German railway giant said it had launched an "open and non-discriminatory" process for the sale of DB Schenker, asking potential buyers to submit offers to its advisory banks Goldman Sachs and Morgan Stanley before noon on January 15, 2024.

 The group will then select a group of interested bidders for the logistics company in the coming weeks.

Deutsche Bahn said that while DB Schenker has a "solid" position in markets that offer "good prospects for long-term growth," DB Schenker needs "additional capital and flexibility to achieve its own growth."

Deutsche Bahn will use the proceeds from the sale to reduce debt, which currently stands at 30 billion euros. Deutsche Bahn said it will focus on its core business, the railway segment, and bring more goods and passengers back to the railways to achieve climate goals and its sustainable development strategy.

In December 2022, the Supervisory Board of Deutsche Bahn commissioned the Deutsche Bahn Board of Directors to review and prepare to sell up to 100% of Deutsche Bahn Schenker's shares. The final decision to sell DB Schenker will be submitted separately to the Supervisory Board for a decision at the end of the sale process. This process depends on the development of capital markets.

Within the industry, DB Schenker is in a very strong position in the market sectors of land, air and sea transport, as well as in professional logistics solutions. The company has approximately 76,600 employees at more than 1,850 locations in more than 130 countries and is one of the world's leading logistics service providers. According to Reuters, Deutsche Schenker's EBIT may reach 1 billion euros this year; in 2022, during the industry boom, profits will reach 1.8 billion euros. 

The remaining question: Which buyer? How much is the amount?

In this way, the mystery surrounding DB Schenker will be solved. The international freight forwarding industry predicts that 2024 will be the "year of integration." DSV, UPS, DHL, Kühne+Nagel, etc. are all interested in this merger.

Large shipping companies such as Maersk are also eyeing the freight forwarding field - but changing market conditions may hinder them.

In addition, financial investors such as Abu Dhabi Sovereign Wealth Fund (ADQ) may also take action. In the financial industry, Deutsche Schenker's valuation once reached about 15 billion euros.

The market's valuation of DB Schenker reached a record high of 20 billion euros. German Handelsblatt said the current valuation range may be between 12 billion and 15 billion euros.