Maersk pulls out of bid for DB Schenker citing integration “challenges”

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Maersk pulls out of bid for DB Schenker citing integration “challenges”
  • Maersk pulls out of its bid for DB Schenker, noting integration “challenges”
  • The withdrawal of the Danish shipping group apparently leaves three other players in the bid: DSV; Barhi; and the consortium of Scan Global Logistics owner CVC, Abu Dhabi Investment Authority and Singapore wealth fund GIC
  • Maersk CEO Vincent Clerc said the company is no longer interested in the bid for DB Schenker as integrating the German-based logistics firm would present too many challenges

Maersk has pulled out of its bid for DB Schenker, citing integration “challenges.”

The withdrawal of the Danish shipping group on July 1 apparently leaves three other players in the bid: Danish transport services company DSV; Barhi, Saudi Arabia’s national shipping carrier; and the consortium of Scan Global Logistics owner CVC, Abu Dhabi Investment Authority (ADIA) and Singapore wealth fund GIC.

“We said we would look into this opportunity, and we did. 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,” Maersk CEO Vincent Clerc said in a statement.

Following an internal review, Clerc said that it is no longer interested in the bid for German-based DB Schenker as integrating the logistics firm would present too many challenges.

“Over the past months, Maersk has conducted a review of the DB Schenker business and, during the past few weeks, there has been an opportunity to participate in an in-depth due diligence. Following this review, Maersk has decided to withdraw from the process.

“But the in-depth review also 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. It has been a good process, ensuring that we can make the most well-informed decision possible,” Clerc said.

Sources noted that one or more of the bids submitted by the four in an earlier round exceeded 15 billion euros ($16.13 billion). In addition, other bids came in between 13 billion and 14 billion euros according to one of the sources.

In the meantime, Maersk has committed to grow its logistics business by continuing to pursue market opportunities in alignment with its strategy.

“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. We are executing our growth plans in the terminals business and implementing a new ocean network. This is where our focus is, and we are fully dedicated to further unfolding all the potential that we see,” Clerc said.

READ: Container rates sink to unsustainable levels — Maersk CEO