Deutsche Bahn AG has launched the sale process for its logistics subsidiary DB Schenker.
The DB Group has issued an official announcement laying out an open and non-discriminatory process for the sale of the shares.
The condition for a sale is that it must have apparent economic advantages for Deutsche Bahn in all respects.
DB Schenker has reportedly contributed very positively to the DB Group’s economic growth over the years. However, the DB subsidiary will need more capital and flexibility for its own growth.
The DB Group will retain all proceeds from a sale, a large part of which will be used to reduce debt.
A sale would significantly accelerate Deutsche Bahn’s focus on its core business and the implementation of the Strong Rail strategy.
Deutsche Bahn has already contractually agreed the sale of several of its business units in foreign markets and would be taking another big step by letting go of DB Schenker.
READ: Deutsche Bahn selects three banks to sell $20 billion logistics unit
“Our goal is to serve the climate, people and the economy by substantially increasing the cargo and passenger volumes handled by eco-friendly rail services,” Deutsche Bahn said in a statement.
In December 2022, the Supervisory Board of Deutsche Bahn AG assigned DB’s Management Board the task of examining the case and preparing for a potential sale of its entire shares in DB Schenker.
The final decision on a sale of DB Schenker will be based on a separate resolution adopted by the Supervisory Board of Deutsche Bahn AG at the end of the sale process. The process is also subject to general capital market developments.
At the start of the year, Deutsche Bahn’s management board asked its supervisory board for the go-ahead to prepare a sale of its international logistics subsidiary Schenker.
More recently, Hapag-Lloyd entered into a partnership with DB Schenker to use a waste- and residue-based biofuel to cut emissions during container shipping.
