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COPENHAGEN (Reuters) - DSV Panalpina said on Tuesday it had agreed to acquire the logistics division of Kuwait’s Agility Public Warehousing Co in an all-share deal worth $4.1 billion, creating the world’s third largest freight forwarding company.
FILE PHOTO: DSV Panalpina CEO Jens Bjoern Andersen is seen during a news conference in Basel, Switzerland, April 1, 2019. REUTERS/Arnd Wiegmann/File Photo
The deal is one of several in recent years as global logistics companies are looking to build scale in a fragmented freight transport market.
It will see Copenhagen-based DSV overtake DB Schenker, putting it behind only DHL Logistics and Kuehne & Nagel as measured by revenue and freight volumes.
DSV s acquisition of GIL is expected to increase its revenue by about 23 per cent, making it one of the top three freight forwarders in the world.
The combined entity will have a revenue of more than $22bn and employ more than 70,000 people in over 90 countries.
It will handle about 2.8 million containers and more than 1.6 million tonnes of air freight a year.
“GIL’s presence in fast-growing emerging markets in [Asia-Pacific], as well as Europe and the Americas, will be a strong addition to DSV’s existing network,” said the company s chief executive, Jens Bjorn Andersen. GIL will bring additional warehousing capacity of more than 1.4 millions square metres across the Middle East and Asia, significantly strengthening DSV’s contract logistics capabilities.
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