DSV and Panalpina agree merger terms

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DSV and Panalpina have agreed to merge to create £13.6 billion business named DSV Panalpina employing 60,000 people in 90 countries.

Panalpina’s board is recommending an offer of 2.375 DSV share for one Panalpina share – equal to CHF195.8 per share. DSV said the offer already had the support of shareholders representing 69.9 per cent of Panalpina’s shares.

DSV launched its first bid for Panalpina in January, but this was rejected by the Ernst Göhner Foundation, Panalpina’s largest shareholder with some 46 per cent of the company’s total share capital.

Under the new deal, the Ernst Göhner Foundation will become DSV’s largest shareholder with 11 per cent of the issued share capital.

The deal will increase DSV’s revenue by some 50 per cent to DKK118bn (£13.6bn).

The Air & Sea division will expand substantially to handle some three million teu and 1.5 million tonnes of air cargo a year. In contract logistics, the enlarged business will have an additional 500,000 sq m of warehousing.

The deal will also increase DSV’s exposure to the Asia Pacific region and the Americas.

In the UK, DSV operates through three main divisions. DSV Air & Sea has a turnover of £201m in 2017; DSV Road turned over £194m; while DSV Solutions turned over £72m. Panalpina had a turnover in the UK of £155m in 2017.

“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,” said DSV chairman Kurt Larsen.

Panalpina chairman Peter Ulber said: “The board of director’s assessment is that the updated proposal of DSV is very attractive. It is recognising the quality of Panalpina’s employees, the company’s strong position as one of the world’s leading providers of supply chain solutions, and its special competencies and know-how in air and ocean freight. The board of directors recommends Panalpina’s shareholders to accept the offer.

“Talks with Agility have been discontinued. We are now looking forward to join forces with DSV and contribute to creating one of the world’s largest transport and logistics companies.”

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