DFDS terminates Ekol acquisition and lowers financial outlook until 2024

Danish shipping and logistics company DFDS has officially called off its acquisition of Turkish logistics provider Ekol and has revised its financial outlook downwards until 2024.

The acquisition, which was first announced in December 2021, was valued at around €250 million and would have seen DFDS acquire Ekol's entire share capital.

However, DFDS announced on Wednesday that it had terminated the acquisition agreement, citing "the current geopolitical situation and the resulting deterioration of the global economic outlook" as the reasons for its decision.

The company also said that it had revised its financial outlook for the period 2022-2024, with revenue growth now expected to be in the range of 6-9% per year, compared to the previous forecast of 8-12%.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) are now expected to be in the range of 25-30% of revenue, compared to the previous forecast of 28-32%.

DFDS said that the downward revision of its financial outlook was due to "the uncertain macroeconomic outlook, including the war in Ukraine, the energy crisis, and the potential for a global recession".

The company added that it remained "committed to its long-term strategy and financial targets" and that it would continue to "invest in its business and explore new growth opportunities".

DFDS's decision to terminate the Ekol acquisition and lower its financial outlook is a sign of the challenging economic environment that the shipping and logistics industry is currently facing.

The war in Ukraine, the energy crisis, and the potential for a global recession are all having a negative impact on the global economy and are making it difficult for companies to plan for the future.

DFDS's decision to terminate the Ekol acquisition and lower its financial outlook is a reflection of the uncertainty that is currently facing the shipping and logistics industry.