Denmark-based logistics company DSV is to acquire Swiss rival Panalpina for 4.6 billion Swiss francs (US$4.6 billion), ending a more than two-month takeover battle designed to build scale in the consolidating transport sector.

Reuters reported that DSV, whose chief executive Jens Bjorn Andersen has been on the hunt for targets to broaden his company’s global reach and help cut costs, said on Monday Panalpina had accepted the offer.

DSV’s combination with Panalpina’s air- and sea-freight operations will create the world’s fourth-largest freight-forwarding company, with only DHL Logistics, Kuehne & Nagel and DB Schenker now bigger.

The 20 largest freight forwarders control just a third of the market, making the industry ripe for takeovers or partnerships as companies look for ways to improve profitability and take advantage of economies of scale.

Andersen said he believed DSV would be able to integrate Panalpina into DSV within two to three years and he felt confident that competition authorities would approve the deal.