A giant leap for Deutsche VerkehrsBank AG, …into the top 10 of shipping finance

by Kevin Oates

Sometimes acquisitions make good sense. Such is the case with DVB and Nedship. It had been rumoured since October but eventually confirmed in December that the German bank Deutsche VerkehrsBank AG (“DVB”) would acquire the Dutch specialist shipping bank Nedship Bank from its parent Rabobank. The transfer of ownership is due to take place in April 2000 providing it gets approval from the relevant banking regulatory authorities in both countries. Unlike many mergers and acquisitions which end up with excess resources, both human and tangible, this coming together seems to be a perfect match with each party benefitting from the strengths and supplementing the weaknesses of the other. Will it however be beneficial for shipowners seeking financing or will it close two doors and open just one?

Deutsche VerkehrsBank AG
DVB AG has for 75 years focused on providing financial services to the transportation industry, mostly however land and air based transport. The Group has 750 employees with offices all over Germany and in Basle, London and New York. The bank was owned by German railways until 1995, when it came under the control of DG Bank which has a 65% shareholding. Additionally the cooperative Sparda banks own 13%, Kravag, an insurer focusing on insuring road transport has 10% and the German railways still holds 1%. Indeed a bank with a focus on transportation!!!

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