DSV has overcome a significant obstacle in its planned acquisition of DB Schenker, with the European Commission approving the transaction.

The Commission stated, "Given the limited impact of the transaction on competition in the markets where the companies operate, the Commission concluded that the deal raises no competition concerns.

In particular, the Commission examined the effects of the transaction on road, air, and ocean freight forwarding, as well as contract logistics services in several national markets within the European Economic Area. It found that, given the fragmented nature of these markets and the presence of multiple alternative providers available to customers post-transaction, the deal poses no issues. The notified transaction was reviewed under the normal merger review procedure."

So far, 35 regulatory authorities have approved the merger, leaving only the U.S. Department of Justice (DOJ) to grant its approval.

According to Bernstein: "The company has submitted documents to the DOJ, and we expect a decision by the end of this month. Given the parties' higher market shares in the EU, we do not see a credible antitrust case in the U.S."

Once U.S. approval is secured, DSV plans to finalize its acquisition of Germany’s DB Schenker in the second quarter.

Reports indicate that during the bidding process for Schenker, DSV committed to retaining "Schenker’s key core functions in Germany, including IT departments in Essen and Frankfurt."

The company added: "Additionally, a joint management team comprising executives from both companies will be appointed for the new entity. The integration approach will follow a 'best person for the job' principle for all positions."

DSV also acknowledged that while medium-term job cuts are expected, long-term employment growth is anticipated. "Five years after the merger, the combined company will have more employees globally and in Germany than Schenker and DSV currently employ."

German media reports suggest that overlaps between DSV and Schenker could lead to the elimination of approximately 1,600 to 1,900 positions, accounting for 13%-15% of full-time roles in Germany. However, DSV has pledged no layoffs for at least two years after the deal closes.

Freight Forwarding Landscape Set for Transformation!

If DSV completes its acquisition of DB Schenker, the global freight forwarding industry could undergo significant changes (the following data is for reference only):

• Rise to the Top in Overall Ranking: The merged DSV could surpass former industry leaders Kuehne+Nagel and DHL to become the world’s largest freight forwarder.
• Ocean Freight: The combined ocean freight volume of DSV and DB Schenker may reach approximately 4.26 million TEU, nearing Kuehne+Nagel’s 4.338 million TEU, creating a "two-horse race" in the sector.
• Air Freight: The merged air freight volume could total 2.63 million tons, exceeding Kuehne+Nagel’s 1.983 million tons and making it the world’s top air freight forwarder.

This acquisition signals a shift from fragmented competition to oligopolization in the freight forwarding industry, potentially prompting companies like Maersk to accelerate mergers to maintain competitiveness. By 2028, the merged company’s EBIT is projected to reach DKK 35.3 billion (~$4.95 billion), doubling from 2024 levels.

DSV is currently the world’s fourth-largest ocean freight forwarder and fourth-largest air freight forwarder. According to Transport Topics’ 2024 Top 50 Global Ocean and Air Freight Forwarders rankings, DSV ranks fourth by volume.

DB Schenker ranks fifth among global freight forwarders. Per the 2024 rankings, Schenker’s annual ocean freight volume is 1.744 million TEU, making it the fifth-largest ocean freight forwarder. In air freight, Schenker handles 160,000 tons, ranking as the third-largest air freight forwarder.