Danish logistics firm DSV is in advanced negotiations to acquire Schenker, the logistics unit of German state railway Deutsche Bahn (DB), in a deal valued at €14 billion. Sources from the railway and government indicate that the agreement could be finalized by the end of this week. However, the deal still requires approval from DB’s supervisory board, which includes government and union representatives.

This development is a setback for CVC Capital Partners, another contender in the bidding war for DB Schenker. CVC recently sent letters to DB’s management and supervisory boards, proposing a deal that would allow DB to retain a 24.9% stake in Schenker for a €1 billion investment. CVC claims this could yield returns of €2 billion to €2.5 billion for DB. Despite CVC’s lower offer, labor union Verdi supports their bid, arguing that a DSV takeover would result in more job cuts.

DB aims to sell Schenker, its most profitable division, to fund investments in its domestic passenger services and reduce its €30 billion debt. Both DSV and CVC declined to comment on the ongoing negotiations. A DB spokesperson emphasized that the sales process is confidential and that any sale must be economically beneficial for Deutsche Bahn. The final decision will be presented to DB’s Supervisory Board and requires approval from the Federal Government.