Danish logistics group DSV has completed the acquisition of the Swiss logistics group Panalpina, creating the world’s fourth-largest freight-forwarding and logistics group.
The Swiss logistics group accepted a bid from DSV in April, after more than two months of negotiations, during which there was also speculation of an Agility tie-up.
The enterprise value of the acquisition has been put at US $5.50 billion by DSV.
The group’s combination with Panalpina’s air and sea freight operations will create one of the largest express logistics companies in the world. In fact, only DHL Logistics, Kuehne & Nagel and DB Schenker are larger in terms of annual turnover.
“We are very excited to welcome Panalpina’s customers, employees and shareholders to DSV,” DSV CEO Jens Bjorn Andersen said in a statement.
“Our two companies will achieve more together, creating even more value for all our stakeholders,” he added.
Panalpina shareholders will receive 2.375 DSV shares, with a nominal value of 1 Danish crown per share, for each Panalpina share.
The new group will be named ‘DSV Panalpina’, pending the approval at an extraordinary general meeting.
The Danish company said it expects annual cost synergies of US $330-million from 2022.