Panalpina confirms DSV takeover bid for US$4 billion

This morning, the Panalpina board of directors confirmed that it had received an unsolicited, non-binding proposal from Danish logistics rival DSV to purchase the Swiss forwarding giant.  The offer was for CHF170 per share, from a combination of cash and DSV shares, adding up to about US$4 billion.

The board stated that “according to its fiduciary duties,” it is now reviewing the proposal “in conjunction with its professional advisers,” adding that “further announcements will be made as appropriate.”

Later, DSV said “we have not yet received a response to our indicative and private proposal from Panalpina’s board of directors,” but added that a combined DSV and Panalpina “would create a leading global transport and logistics company with significant growth opportunities and potential for value creation… A combination presents a unique opportunity for both companies and their respective stakeholders including shareholders, employees, customers and suppliers.”

Based on Air Cargo World’s latest “Power 25” freighter forwarder rankings, using 2017 figures compiled by Armstrong & Associates, as agreed-upon merger would create the world’s second largest airfreight forwarder with more than 1.63 million tonnes of cargo handled each year. That would place the combined companies just ahead of Swiss forwarder Kuehne + Nagel (1.57 million tonnes) and behind DHL Supply Chain & Global Forwarding (2.25 million tonnes).

Gross revenues of a DSV/Panalpina entity, would it would be just under $17 billion, based on the same Power 25 list.

This is not CSV’s first spin at the merger and acquisitions game. Last October, the Danish firm tried unsuccessfully to purchase another Swiss firm, CEVA Logistics. CEVA rejected the $1.6 billion bid, saying it was “inadequate” and “not in the best interest of its shareholders.”