Maersk pulls out of DB Schenker bid after identifying 'challenges' in integration

© Mariusz Bugno

Maersk has withdrawn from its bid to buy DB Schenker, leaving only three companies in the running.

Maersk reportedly offered around 15 billion euros, but the company said today that following an internal review it believed the integration would be too difficult.

Vincent Clerc, CEO, said: “Over the past few months, Maersk has carried out a review of DB Schenker's activities and, over the past few weeks, it has been possible to participate in an in-depth due diligence. Following this review, Maersk decided to withdraw from the process.

“We said we would look at this opportunity, and we did. Our investigation confirmed that DB Schenker is an interesting company with a comprehensive portfolio in the logistics market and with additional potential to unlock for the future.

“But the thorough review also identified problem areas from an integration perspective and ultimately we concluded that acquiring DB Schenker would not be the right thing for our business at this time. It was a good process, ensuring we can make the most informed decision possible.

German reports focused on DB Schenker's IT system, which would require investment and could be too difficult a task to take on alongside operational integration.

A German source said The loading star The merger would have been a difficult balance between risk and opportunity and a huge undertaking for Maersk, even if DB Schenker was a “good company”.

Sources have previously suggested that Maersk had found the integration of Senator International difficult.

Maersk's withdrawal leaves three contenders in the running for Schenker: DSV; Barhi, the national shipping company of Saudi Arabia; and CVC, owner of Scan Global Logistics, as well as Abu Dhabi Investment Authority (ADIA) and Singapore wealth fund GIC.

Maersk is believed to have been the highest bidder, or perhaps in the middle of the pack, with DSV being the lowest bidder.

And, according to Loadstar Premium Today, Deutsche Bahn is giving itself some leeway, with a clause that would allow it to sell less than 100% – a clause that could deter DSV, which is keen on mergers and acquisitions.

Maersk should not rest on its M&A laurels, however, given its acquisition history and team of M&A specialists.

The source said Maersk would be better off seizing market opportunities that do not jeopardize the company's future, adding: “It is more likely to focus on targets that better fit its strategy.”

Mr. Clerc added: “Our strategic direction remains unchanged; acquisitions continue to be an important lever to develop our logistics activity. We are committed to continued growth in Europe, including Germany, and we see our organic growth in logistics gaining momentum. We are executing on our growth plans in the terminal sector and establishing a new maritime network. These are the areas where we are focused and we are fully committed to realizing all the potential we see. »