Abu Dhabi for DB Schenker?

News 15 Dec 2023 by WCN Editorial

The Abu Dhabi state investment fund (ADQ) is likely to make a bid for the German forwarding and logistics giant

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German business newspaper Handelsblatt has published an article about the ongoing sale preparation of DB Schenker by state-owned Deutsche Bahn AG suggesting that a likely buyer is sovereign wealth fund ADQ.

Despite recent reports, a tender for sale process has still not been started. it is obvious that ADQ would be able to make a “financial interesting offer,” and Volker Wissing, the federal Minister for Digital Affairs and Transport, is pushing hard for a sale in order to reduce DB AG’s huge debts. However, there are reservations about and even outright hostiliy to selling to Abu Dhabi within the governing coalition.

Concerns have been expressed about DB Schenker falling into the hands of an authoritarian government (viz: proposed sale of Telegraph group in the UK to an Abu Dhabi state-backed fund). One of Schenker’s major customers is the German military (Bundeswehr) and, through the army, NATO. Foreign policy experts are advising caution and stress the point that Schenker is a company of strategic value.

The Supervisory Board of DB AG met yesterday and more details may be made available within the next few days. The Ministry of Defence has already argued for military logisticss to be excluded from any sale and stay within DB Cargo.