COPENHAGEN/ZURICH: Swiss logistics group Panalpina has bowed to an increased 4.6 billion Swiss francs (US$4.6 billion) bid from Danish rival DSV, ending a more than two month takeover battle designed to build scale in the consolidating transport sector.
DSV, whose Chief Executive Jens Bjorn Andersen has been on the hunt for targets to broaden his company’s global reach and help cut costs, said on Monday Panalpina had accepted an all-share offer of 2.375 DSV shares for each Panalpina share.
Shares in DSV rose 2.5 percent in early trade while Panalpina shares jumped 15 percent.
DSV’s combination with Panalpina’s air- and sea-freight operations will create the world’s No. 4 freight-forwarding company, with only DHL Logistics, Kuehne & Nagel and DB Schenker now bigger.
The 20 largest freight forwarders control just a third of the market, making the industry ripe for takeovers or partnerships as companies look for ways to improve profitability and take advantage of economies of scale.
The new bid gives an implied price of 195.8 Swiss francs for each Panalpina share, compared with DSV’s Feb. 15 cash offer of 180 francs per share and an initial cash and shares offer then worth 170 francs made in January.