|Website traffic statistics|
Pages viewed and unique visitors to WCN Online
|WorldCargo News the world's leading resource for international cargo professionals
Published: 12 February 2018
Chinese set to buy German transport bank?
It has been reported that the country’s long-established shipping and transportation asset finance bank, DVB Bank SE, is up for sale
DVB Bank SE, part of DZ Bank AG (Deutsche Zentral-Genossenschaftsbank (Cooperative) in Frankfurt-am-Main, is reportedly up for sale, with two Chinese banks - the Bank of China (BOC) and the Industrial and Commercial Bank of China (ICBC) - in the frame to acquire it.
Last December Reuters reported that DZ Bank wanted to dispose of its transportation asset finance subsidiary because of the bad debts in its ship finance portfolio.
Other sources report that Apollo and Carlyle have expressed interest in DVB. Neither DZ Bank, nor the possibly interested investors, were prepared to comment. Originally it was DZ Bank’s intention to sell DVB to Mitsubishi Group of Japan, but negotiations stalled. I
CBC and BOC were also among the parties interested in buying the troubled HSH Nordbank, but dropped out.
German banks were world market leader sin ship financing, but shipping industry crises have led to accumulated debts of around US$100B, much of which has to be written off.
In H1 2017 DVB made a loss of €506M on the ship finance side and the Board member responsible for this division, Bart Veldhuizen, was fired.
DVB is also active in financing the aviation and other sectors and some reports indicate that the Chinese banks are really only interested in “cherry picking” the aviation finance division. Up to now DVB has been sheltered by DZ Bank’s “AA minus” rating. It would lose this “protection” as a stand-alone business, but China’s massive trade surpluses mean that is banks have very long pockets.
There is growing concern over Chinese investment targets in Europe. Earlier this year German Economic Affairs Minister Matthias Machnig called for Europe-wide measures to police surging Chinese investments. However, it is not just Chinese investors who want to cherry pick DVB!