DSV and Panalpina agree merger deal
Following months of M&A speculation, DSV and Panalpina have agreed terms and conditions on a merger deal that will create one of the largest transport and logistics companies in the world.
The combined entity, to be known as DSV Panalpina, will have anticipated revenues of £13.5 billion once the merger is completed and a workforce of 60,000+ employees operating in 90 countries.
DSV’s third offer at CHF195.8 per share values the Swiss forwarder at approximately £3.5 billion and has the backing of 70% of Panalpina's shareholders, including its largest and most influential, the Ernst Göhner Foundation.
Kurt Larsen, Chairman of the Board of DSV, said: "A combination of DSV and Panalpina further strengthens our position as a leading global freight forwarding company. Together, we can present a strong global network and enhanced service offering to our clients, further solidifying our competitive edge in the industry. It’s a great match on all parameters. Panalpina is a great company and we’re very excited by the possibility to join forces and to welcome Panalpina’s talented staff.”
Peter Ulber, Chairman of the Board of Panalpina, said: "In the course of the past weeks, Panalpina’s board of directors and management have been exploring different strategic initiatives and held discussions with DSV about a potential combination. The board of directors’ assessment is that the updated proposal of DSV is very attractive. We are now looking forward to joining forces with DSV and contributing to creating, one of the world’s largest transport and logistics companies."
The agreement would seem to signal the end of months of M&A speculation surrounding both companies. Following DSV’s failed bid to buy CEVA Logistics in October last year, it has had two share offers - CHF170 and CHF180 respectively - rejected by the Panalpina board this year. Panalpina has then entered into talks about a possible partnership with Kuwaiti logistics company Agility. It has been confirmed those talks have now ended.
Posted on: April 3rd 2019