Monday, April 1, 2019

If Bid is Successful Two Freight Forwarding and Logistics Groups Will Become One

Offer Put to Shareholders to Form Giant International Supply Chain Outfit
Shipping News Feature
SWITZERLAND – DENMARK – It seems that flurry of activity at the end of February as the Ernst Göhner Foundation (EGF) sorted out the voting situation at freight and logistics firm Panalpina in the light of a new and improved offer for shares from Danish shipping conglomerate DSV, has borne fruit. Today DSV announced an all share voluntary public tender offer for all publicly held shares of Panalpina after the two agreed terms.

This melding together of two of the largest supply chain providers is no small thing. 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 approximately DKK 118 billion and a workforce of more than 60,000 employees operating in 90 countries.

The Public Exchange Offer to all Panalpina shareholders, if completed, will see DSV call an extraordinary general meeting, at which the proposal will be put to all its shareholders, that the name of the group be changed to DSV Panalpina A/S, which the directors feel reflects ‘the long, rich history of both companies’. Kurt Larsen, Chairman of the Board of DSV, commented:

"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”.

The pair say that the match is a strong one with many potential synergies as a result of similarities in business models, services and strategies. One assumes however that this much vaunted rationalisation and consolidation of operations, administration and logistics facilities and IT infrastructure may come at the cost of some jobs. Peter Ulber, Chairman of the Board of Panalpina, was however upbeat, observing:

"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."