Panalpina has announced that it is in talks with Kuwait-based Agility for a potential merger, while Panalpina itself is the target of merger plans by DSV, which this week increased its offer by 10 SFr to SFr180 per share (AED 657).
“A combination of 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,” the Danish logistics giant said in a statement.
However, Panalpina seems more interested in orchestrating its own merger, and has confirmed via a statement that it is "in discussions with Agility Group on potential strategic opportunities with regard to their respective logistics businesses".
The move would enable Panalpina to considerably increase its size and fend off future takeover attempts, but was not well-received by investors, with its share price falling on the news. The DSV takeover would provide shareholders with a premium in excess of 24%.
Panalpina’s main shareholder at 45.9%, however, the Ernst Goehner Foundation, is more supportive of the Agility tie-up and wants to retain a stake in the joint entity.
Panalpina said it had received the new offer from DSV and the board of directors would review the proposal in conjunction with its professional advisers.
In 2017, the latest year figures are available, Panalpina generated revenues of US $5.6-billion, while Agility's revenues stood at US $3.5-billion.