The National Shipping Company of Saudi Arabia (Bahri) [Tadawul:4030] is actively exploring acquisitions in the logistics sector in Europe and the US, according to three sources familiar with the situation.

A company spokesperson confirmed that overseas expansion is under consideration but declined to comment on whether acquisitions would be part of the plan.

The shipping company is particularly interested in asset-light firms, such as freight-forwarding companies, with annual revenues of at least EUR 1bn, one source said.

Bahri is prepared to invest between EUR 1bn and EUR 3bn for full ownership of such companies, a second source said. The company is open to even higher investments depending on the opportunity, he added, highlighting its recent bid for German logistics giant DB Schenker.

In July 2024, it was reported that Bahri dropped its EUR 15bn bid for DB Schenker, although the reasons for this were not disclosed.

In September, DSV [CPH:DSV] signed an agreement with Deutsche Bahn to acquire 100% of Schenker for EUR 14.3bn.

Bahri will use a combination of debt and equity to finance potential deals, the two sources said.

The company has significant financial resources, and it makes sense for the company to target a European logistics player, especially after being outbid for DB Schenker, said a shipping and logistics banker.

Bahri’s M&A strategy is aimed at establishing a strong presence in Europe, the banker said. It has ample cash to invest and is looking to diversify into new, lucrative markets, he added.

While pointing to Germany and the Nordics as potential hubs for Bahri’s expansion, the banker said that finding the right target will require careful consideration. There are one or two companies that “fit the bill,” he said, without disclosing them.

Bahri has a market capitalization of SAR 20.7bn (EUR 5.1bn). Its shareholders include Saudi Arabia’s Public Investment Fund (PIF), with 22.55%, and the Saudi Aramco Development Company (SADCO) (20%), according to its website.

Established in 1978, Bahri is a maritime logistics and transportation company offering a wide range of services, including dry bulk, liquid bulk, container shipping, and logistics solutions.