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Integration of Schenker and Bax proceeds in Asia Pacific

published: cw 11, 2007 in Mergers & acquisitions

Further news on the progress of the integration of Schenker and Bax Global has been released. The two logistics and forwarding operations are subsidiaries of German-based DB Logistics which in turn is part of the German state owned national rail operator. Following the acquisition of Bax Global by Deutsche Bahn in 2005, there have been moves to bring the two companies together under the Schenker brand.

The latest move involves the integration of Bax and Schenker in India where both companies have had operations for more than a decade. In line with the integration schedule, it is planned to have the two organizations merged legally by end of the second quarter of 2007. The joint company will operate under the name of Schenker India Pvt Ltd and will employ over 900 staff.

So far it would seem from company announcements that greatest progress on integration has been made in the Asia Pacific region. Schenker Philippines has already announced the completion of the merger between BAX Global, CPI Transport, and StarTrans International. In Japan Schenker-Seino Co. Ltd. and BAX Global Japan K.K. also announced the completion of the merger of the two organisations in January 2007.

The challenges involved in integrating two such well known brands can not be underestimated. Care must be taken in markets where Bax Global is the better known of the two to ensure a smooth transition. This is particularly the case in the US where Bax Global has invested heavily over the past decades in developing a strong brand, especially in integrated heavy freight. It is for this reason perhaps that DB Logistics has not rushed into making major changes to the brands in this market.

Source: Transport Intelligence


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