Maersk Walks Away From Bidding For Germany's DB Schenker
By Dominic Chopping
A.P. Moeller-Maersk walked away from bidding for German logistics provider DB Schenker after it identified potential challenges with integrating the business.
Germany's state-owned rail-and-logistics operator Deutsche Bahn late last year launched a sale process for its DB Schenker logistics subsidiary and Maersk executives had publicly disclosed an interest in acquiring the business as the company works to transform itself into a fully integrated logistics provider, reducing its reliance on the container-shipping business.
The Danish shipping giant has been assessing DB Schenker's strategic fit and recently conducted in-depth due diligence, but following this review has decided to withdraw from the process.
"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 Chief Executive Vincent Clerc said in a statement.
"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."
Analysts had previously questioned the financial logic of a deal, with Jyske Markets senior analyst Morten Holm Enggaard saying earlier this year that a deal was unlikely due to limited opportunities to create synergies.
A spokesperson at Deutsche Bahn said the DB Schenker sales process continues according to plan.
"We are currently in intensive discussions with the various parties interested in DB Schenker," they said.
At 1124 GMT Maersk shares were 5% higher at DKK12,715.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
July 01, 2024 07:52 ET (11:52 GMT)
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