The logo of Swiss transport and logistics firm Panalpina is seen at an office building in Basel, Switzerland March 11, 2019. REUTERS/Arnd Wiegmann
ZURICH (Reuters) – Denmark’s DSV A/S will buy Panalpina in a share swap valued at 4.6 billion Swiss francs ($4.62 billion), the Swiss freight forwarder said on Monday, after receiving a raised offer.
DSV Chief Executive Officer Jens Bjorn Andersen has been on the hunt for targets to broaden his company’s global reach and help cut costs. His 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.
“A combination of DSV and Panalpina further strengthens our position as a leading global freight forwarding company,” DSV Chairman Kurt Larsen said. “Together, we can present a strong global network and enhanced service offering to our clients, further solidifying our competitive edge in the industry.”
DSV will offer 2.375 DSV shares for one Panalpina share, Panalpina said. The offer equals an implied offer price of 195.8 Swiss francs for each Panalpina share, more than DSV’s Feb. 15 cash offer of 180 francs per share in the Swiss company.
The agreement ends a fight between Panalpina’s shareholder and activist investors over the company’s future.
The Ernst Goehner Foundation, which has 46 percent of Panalpina, had previously resisted pressure from 12.3 percent shareholder Cevian Capital as well as 9.9 percent owner Artisan Partners to sell the company to DSV.
The foundation and Cevian said they both backed the deal.
“We welcome the agreement between Panalpina and DSV,” Cevian co-founder Lars Forberg said in a statement. “We believe the combination has great industrial logic and will create one of the best companies in the logistics industry.”
Reporting by John Miller, editing by John Revill