At the third time of asking, Panalpina has agreed to go to the altar with DSV. The combined, Denmark-based entity will be known as DSV Panalpina A/S
Swiss logistics group Panalpina has accepted an increased CHF4.6B (€4.12B) bid from Danish rival DSV. This was DSV’s third bid. The first bid valued Panalpina at around CHF4B and was rejected in January.
In a new joint statement from Copenhagen and Zurich DSV and Panalpina say they have reached an agreement on the terms and conditions of a combination by way of a Public Exchange Offer to all Panalpina shareholders.
Assuming the offer is successful, DSV and Panalpina will become one of the world’s largest transport and logistics companies with a pro forma revenue of around DKK118B (€15.8B) and a workforce of more than 60,000 employees operating in 90 countries.
Following completion, DSV will propose to its shareholders, at an EGM, to change its name to DSV Panalpina A/S, to reflect the long, rich history of both companies.
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."
DSV and Panalpina say the tie-up is a strong match, with many potential synergies as a result of similarities in business models, services and strategies:
Following settlement of the Public Exchange Offer, further details on the impact of the acquisition will be communicated.