Panalpina, a logistics group from Switzerland, has bowed to a big $4.6 Billion proposal from Danish contender DSV. This has ended a takeover battle that continued for a period of over two months. This deal was designed to put the scale up in strengthening the transport sector. Jens Bjorn Andersen, Chief Executive, DSV, was in search of targets to widen the firm’s global reach and assist cut costs. Recently, he proclaimed that the firm had accepted an all-share proposal of about 2.375 DSV shares for all Panalpina share.
In an early trade, shares in DSV increased by about 2.5%. At the same time, the shares of Panalpina were noted to jump at 15%. DSV’s amalgamation with Panalpina’s sea- and air-freight operations is supposed to make it a No. 4 freight-forwarding company in the world, with only Kuehne & Nagel, DHL Logistics, and DB Schenker now larger.
On a similar note, with the latest acquisition, DSV might move up some places on the ranking within air and sea. In an interview with ShippingWatch, Andersen proclaimed that the firm will be number two within air freight. He added that the move is supposed to transport about 3 Million containers per year.
In comparison, a carrier Maersk can transport about 13.3 Million forty-foot containers per year in ports. However, no matter what, the potential Swiss-Danish firm is supposed to make its position stronger within the sector. With the latest acquisition, the number of staff members also has increased to reach about 60,000. The CEO of the firm ensured that the novel size of the firm will offer good opportunities in terms of its expansion. He added that once the firm reaches a certain size within the industry, it opens possibilities for employees, customers, and shareholders.