Germany Sells $2.3 Billion in DHL Group Shares to Fund Railway Upgrades

The sale aims to bolster the capital of the state-owned Deutsche Bahn, enhancing the country's rail infrastructure.

Germany's state-owned development bank sold $2.3 billion worth of DHL Group shares, reducing the government's stake to 16.5%.
The proceeds will be used to strengthen Deutsche Bahn's capital, aiming to upgrade Germany's railway infrastructure.
The move follows a court ruling that forced the government to address a significant budget shortfall and revise its financial strategies.
In 2022, a decision to reallocate funds originally intended for COVID-19 relief to climate change and modernization efforts was overturned by Germany's highest court.
The sale marks a shift towards using privatization proceeds to finance infrastructure improvements, amidst challenges in adhering to Germany's strict debt limits.