The Supply Chain Year in Stories: September 2024
DSV to buy DB Schenker from Deutsche Bahn in US$15.8bn Deal
In something of a groundbreaking deal in the context of the logistics industry, DSV has reached an agreement to purchase DB Schenker from Deutsche Bahn for a sum of €14.3bn (US$15.8bn).
Taking into account expected interest income until completion, the total sales value amounts to €14.8bn (US$16.4bn).
The deal forms a central part of DSV’s ambitious plans to create a global market leader in the transport and logistics sector, with Germany becoming an even more important market to the new organisation. Around €1bn (US$1.1bn) is set to be invested in the country over the next three to five years.
“We have a clear plan for how we want to become one of the world's leading transport and logistics companies together,” comments Jens H. Lund, Group CEO at DSV.
“Hand in hand and under one roof, the employees of DSV and Schenker will combine our strengths to create a true global leader in the industry. This strategic combination with significant investments in competitiveness will ensure long-term growth and create sustainable jobs in Germany.”
DB Schenker: A logistics leader
With around 72,700 employees based in more than 130 countries, DB Schenker is one of the world's leading logistics service providers.
The 152-year-old organisation operates land, air and ocean transportation services, while offering comprehensive logistics and global supply chain management solutions from a single source.
Aiming for a sustainable future in the logistics industry, DB Schenker continuously invests in innovative transport solutions, renewable energies and low-emission products for its customers.
In a statement, DB Schenker said it would be in a position to continue its “dynamic development” in association with DSV, with planned investments from the latter set to drive further sustainable growth.
UK, US and Australia Sign Supply Chain Resilience Pact
The COVID-19 pandemic, not to mention a string of other major disruptions seen in recent years, have exposed the sheer fragility of global supply chains.
Organisations around the world face a tough task to ensure risk management strategies are up to scratch and crucial operations can withstand interruptions – whether anticipated or unforeseen.
There is widespread acceptance of the need to future-proof integral supply chains, as demonstrated by a trilateral collaboration between the US, UK and Australia, whose governments have agreed a supply chain resilience pact aimed at addressing risks and strengthening strategic cooperation between the superpowers.
A newly-signed Memorandum of Understanding (MoU) includes the establishment of the Australia-United Kingdom-United States Supply Chain Resilience Cooperation Group to cooperate on data sharing and joint action to build resilience in priority supply chains, enhancing the nations’ mutual ability to identify and address risks, threats and disruption to critical supply chains.
Historic relationship deepens
In a statement, the UK’s Department for Business and Trade (DBT) said the cooperation group would begin work by developing an early-warning pilot focused on the telecommunications supply chain – essential to global, digitised economies.
By identifying and monitoring disruption risks to the telecommunications supply chain, it’s hoped the pilot will enhance all three countries’ knowledge of the vulnerabilities, criticality and residual risks.
Ultimately, it will result in the development of procedures for sharing this information and responding cooperatively to disruptions.
“Strengthening critical supply chains is vital for ensuring the stability and resilience needed to meet the UK’s growth mission,” the DBT added.
“This agreement signifies a deepening of the important and historic relationship between the UK, US and Australia and reinforces our mutual commitment to tackling supply chain challenges.”
Explore the latest edition of Supply Chain Digital and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE
Discover all our upcoming events and secure your tickets today.
Supply Chain Digital is a BizClik brand.
