London, England – The iconic Royal Mail, one of Britain’s oldest institutions, is set to be acquired by Czech billionaire Daniel Křetínský in a £3.57 billion takeover bid. This marks the first time the historic postal service will be owned by a foreign entity.
International Distribution Services, the current owner of Royal Mail, has accepted an offer of £3.70 per share from Křetínský’s EP Group. The deal has raised concerns among workers and the public about the future of this vital national infrastructure.
In response to these concerns, EP Group has made commitments to uphold Royal Mail’s “universal service obligation,” ensuring the delivery of letters six days a week throughout the UK. They have also pledged to maintain employee benefits, pensions, and keep Royal Mail’s headquarters and tax base in the UK.
Křetínský emphasized the importance of honoring Royal Mail’s tradition and its responsibility to both employees and the citizens who rely on its services daily. He envisions the potential for IDS to become one of Europe’s largest postal logistics groups, acknowledging the need for modernization to compete with evolving market demands.
The acquisition comes at a challenging time for Royal Mail, which has faced declining demand for its services and recorded significant losses in recent years. The move has sparked mixed reactions, with some expressing concerns about the impact on workers and the company’s future.
As the UK prepares for a general election, the proposed takeover will undergo a national security review, possibly under a new government. The Labour Party has already shown interest in safeguarding Royal Mail’s British identity and place in public life.
Křetínský, known for his success in European energy companies, retailers, and football clubs, brings a wealth of experience to the acquisition. With an estimated net worth of $7.7 billion, his investment in Royal Mail signifies a new chapter for the historic institution.