DSV to become world39;s biggest logistics company with Schenker acquisition
Deal financed through equity raising and debt financing
DSV to cut up to 1,900 Schenker jobs in Germany

COPENHAGENBERLIN, Sept 13 Reuters Denmark39;s DSV has agreed to buy Schenker, the logistics arm of German state rail operator Deutsche Bahn, for 14.3 billion euros 15.85 billion in a deal that would make it the world39;s biggest logistics company.

The acquisition will be the biggest by a Danish company and propel DSV above Swiss group Kuehne und Nagel in both volume and revenue, but will still only give the group between 6 and 7 of a highly fragmented global logistics market.

DSV, which started as a small enterprise of 10 truckers in 1976, has grown through a string of acquisitions  sometimes taking over companies larger than itself.

The size of this one is actually larger than all the transactions we39;ve done before, CEO Jens Lund told journalists.

Deutsche Bahn put Schenker up for sale last year to concentrate on its core railway business in Germany and reduce its debt.

Financial investor CVC was the other bidder remaining in the race to buy Schenker, after Maersk and Bahri withdrew their bids.

Shares in DSV rose as much as 4 at opening and were trading 0.2 lower at 0949, following recent gains triggered by reports that a deal was imminent.

The shape of the deal is broadly in line with our thinking but at a slightly better price, Bernstein analysts said in a note.

The allcash…