C.H. Robinson’s global forwarding unit draws interest from rival DSV – sources
Danish transport and logistics company DSV A/S is interested in buying U.S. rival C.H. Robinson Worldwide’s business that specializes in arranging international cargo transport on behalf of shippers, two people familiar with the matter said.
DSV, which is looking to expand in North America, last week met with a small group of investors and said it would be interested in acquiring C.H. Robinson’s global forwarding business, which would give it critical access to trans Pacific ocean trade lanes, the sources said. The unit could fetch a price of as much as $9 billion, the sources said.
The sources requested anonymity as these discussions were confidential.
CH Robinson Worldwide’s stock gained 12.30%, its largest daily rise in the last 10 years, on the news before paring some gains.
DSV is currently not interested in acquiring all of C.H. Robinson or its freight brokerage business, the sources added.
C.H. Robinson, the largest provider of truck brokerage services in the United States, in February reached a settlement with activist investment firm Ancora Advisors. As part of the agreement, the company appointed two new directors immediately and formed a committee to explore strategic options.
A DSV spokesperson declined to comment. A C.H. Robinson spokesperson did not respond to a request for comment. A representative for Ancora declined to comment.
DSV, which is valued at 239 billion Danish krone or $34 billion, has long signaled interest in expanding in North America and has previously indicated that it would like to grow through mergers and acquisitions amid a robust dealmaking environment in the global logistics sector.
Over the past years, DSV has made a number of acquisitions, including its purchase of Agility Public Warehousing Co in 2021 and Panalpina Welttransport Holding in 2019.
C.H. Robinson, valued at $13 billion, has two core businesses — the freight brokerage business, which helps shippers move cargo to carriers, and the global forwarding business, which also arranges for moves but is more complex because it has an international component.
Source: Reuters