Denmark's DFDS ends deal to buy transport network from Turkey's Ekol

Deal termination due to regulatory obstacles

DFDS, a Danish shipping and logistics company, has terminated its agreement to acquire the transport network of Ekol Logistics, a Turkish logistics provider. The deal was initially announced in December 2022 and was expected to close in the second half of 2023, subject to regulatory approvals.

Regulatory hurdles

According to DFDS, the deal termination is due to regulatory obstacles that could not be resolved within the agreed timeframe. The company stated that it explored all possible options to complete the acquisition but ultimately decided to terminate the agreement.

The termination of the deal is a setback for DFDS's growth plans in Turkey and the wider region. The acquisition would have significantly expanded DFDS's presence in Turkey, where Ekol has a strong market position with a wide network of warehouses and distribution centers.

Financial impact

The termination of the deal is not expected to have a material financial impact on DFDS. The company had already made a provision for the acquisition costs in its financial statements.

Continuing partnership

Despite the termination of the acquisition, DFDS and Ekol have agreed to continue their existing partnership. The two companies will continue to cooperate on various projects, including the development of new logistics solutions.

Industry implications

The termination of the DFDS-Ekol deal highlights the challenges of cross-border mergers and acquisitions in the logistics industry. Regulatory hurdles can be a significant obstacle to completing such transactions, especially when dealing with companies from different jurisdictions.

Conclusion

The termination of the DFDS-Ekol deal is a reminder of the complexities involved in cross-border mergers and acquisitions. While such transactions can offer significant growth opportunities, they also come with challenges that need to be carefully considered and managed.