Deutsche Bahn on Tuesday said it had launched the sale process for its logistics subsidiary Schenker as the German rail operator looks to “focus on its core business”.
No financial details were disclosed, but German media have said the sale could be worth up to 20 billion euros ($22 billion).
The company said in a statement it had launched a “transparent process for potential buyers”.
“The DB Group will retain all proceeds from a sale, a large part of which will be used to reduce debt” — estimated at more than 30 billion euros — it said.
State-owned Deutsche Bahn announced in late 2022 that it was preparing to spin off the logistics subsidiary.
An updated strategy set out in 2019 included encouraging more passenger and cargo transport on the “environmentally friendly rails” and developing Germany’s railway infrastructure.
Deutsche Bahn said Schenker had “a solid position within the market” and had “contributed very positively to the DB Group’s economic growth over the years”.
“However, the DB subsidiary will need more capital and flexibility for its own growth,” it said.
Schenker, a 150-year-old company, made a profit of 1.8 billion euros in 2022.
It has some 76,600 employees in more than 130 countries.
The sale comes as Germany grapples with a gloomy economic climate and a budget crisis that has caused a squeeze on public spending.
Transport Minister Volker Wissing last week told the ARD broadcaster the government wants the sale to happen “as quickly as possible”.
“We can make good use of these funds to invest them in railway infrastructure, for example,” he said.
