(Bloomberg) — DSV A/S (CO:DSV) accepted acquire Swiss rival Panalpina Welttransport Holding AG (SIX:PWTN) in a deal worth $4.6 billion and prepare a European powerhouse in logistics and freight forwarding.
The board of directors of Panalpina, that’s fighting because of its independence, recommended shareholders accept the mostly stock offer worth 196 Swiss francs a share, the lenders said within an emailed statement on Monday.
The price represents a 43 percent premium from Jan. 15, the previous day DSV’s initial proposal, and features the backing of investors holding 69.9 % of registered shares like the Ernst Goehner Foundation, which owns 46 percent of Panalpina, using the statement. Panalpina shares were indicated 16.6 % higher while in the pre-market.
The deal ends months of speculation about the way forward for Panalpina, which in mid-February announced talks with Agility for a logistics tie-up of own in an attempt to avoid getting absorbed by Denmark’s DSV. Panalpina minority shareholders, including Cevian Capital AB and Artisan Partners, went public with comments and only a DSV takeover, adding pressure on Panalpina’s management as well as the foundation. Both investors back the sale, adidas and puma said Monday.
“We welcome the agreement between Panalpina and DSV,” Lars Forberg, managing partner at Cevian Capital, said within a separate statement. “We presume the mix has great industrial logic all of which will create one of the greatest companies from the logistics industry.”
DSV made a first unsolicited offer worth 17O Swiss francs a share before sweetening the bid to 180 Swiss francs per share, valuing the point at about 4.3 billion Swiss francs. Following your deal, the Ernst Goehner foundation will become DSV’s top holder.
The takeover comes months after DSV walked faraway from another Swiss target, Ceva Logistics AG, after its offer worth $1.7 billion was rejected. DSV said right at that moment it’d pursue other targets. Panalpina can help boost its air-cargo volumes and ocean-going containers operations, complementing the Danish group’s strength in road shipments.
The global freight-forwarding information mill coming under increasing pressure amid trade tensions between your U.S. and China. Leading players within the highly fragmented sector can also be targeting bigger deals to tap new markets and add cutting edge processing systems to shield them from disruptive technology.
(Updates with Cevian comment in fifth paragraph.)