Companies say they explored options but there are no ongoing discussions
California-based global supply chain services firm UTi Worldwide has admitted tie-up talks have taken place with Danish international transport and logistics giant DSV.
UTi was responding to a Bloomberg report that states UTi is in “advanced talks to sell itself to DSV A/S”.
“Although UTi can confirm that exploratory conversations have taken place between the companies, in response to an inquiry from DSV A/S, those discussions never progressed beyond a preliminary stage. Currently there are no discussions taking place between the companies,” the US firm states.
Both companies have an Australian presence and loss-making UTi is reportedly looking for a suitor.
For its part, DSV states: “The Board of Directors of DSV A/S has become aware that Bloomberg has published an article stating that DSV A/S and UTi Worldwide Inc. have been evaluating the possibilities to enter into an agreement concerning DSV A/S’ acquisition of UTi Worldwide Inc.
“DSV A/S confirms that, in response to an inquiry from DSV A/S, UTi Worldwide Inc. and DSV A/S have conducted certain discussions concerning DSV A/S’ potential acquisition of UTi Worldwide Inc.
“DSV A/S informs that there are no current discussions with UTi Worldwide Inc.”
According to business news service Bloomberg, UTi was “in advanced talks to sell itself” to DSV, sourcing the information to “people with knowledge of the matter”.
Formerly an alliance of 11 owner drivers and trucking firms in the 1970s, DSV is now also an air and sea operator focused mainly on Europe.
If agreed, a link or takeover of struggling freight forwarder and contract logistics services provider UTi would add a global presence of 310 offices and 230 logistics centres in 59 countries.
UTi gained trucking industry prominence in Australia in 2011, when its local arm sought to wind up Ruttley Freight Lines.