Denmark’s DSV, which became the world’s fifth largest freight transportation company by buying up competitors, is considering more large acquisitions to expand in a fragmented market.
Their success in turning around unprofitable companies has gone a way to boost its shares by 25 percent this year as it integrates its $1.35 billion acquisition of UTi in January.
The company’s shares surged 10 percent after UTi deal was announced and its operating profit rose 16 percent to $450 million last year.
The UTi deal was also DSV’s biggest yet, driving it into competition with both DHL Logistics and Kuehne & Nagel and doubling its number of its employees to 44,000.
“We’ve come to realise that bigger acquisitions probably suit us better than smaller ones,” said Jens Bjorn Andersen, DSV chief executive. “We will go for the big ones, if we can find them and convince the owners.”
In reference to the lack of digitalisation in emerging markets, Anderson said “It’s very difficult to take market share, even though the market is so fragmented.”