Billionaire’s £5bn Takeover Offer for Royal Mail Accepted by Owners

The board of the company that owns Royal Mail has agreed to a formal takeover offer for the 500-year-old organisation. Czech billionaire Daniel Kretinsky has firmed up an offer of £5bn, including assumed debts, for the company which employs more than 150,000 people. The entrepreneur said he had the “utmost respect” for its history and tradition.

The offer includes commitments to retain the name, brand, UK headquarters, and UK tax residency, as well as protections for employee benefits and pensions. Business Secretary Kemi Badenoch has the power under the National Security and Investment Act to scrutinize and potentially block the deal.

Chancellor Jeremy Hunt has said that any takeover bid for Britain’s Royal Mail would be subject to “normal” national security scrutiny but it would not be opposed in principle. Shadow business secretary Jonathan Reynolds stressed the historic and crucial role that Royal Mail played in the UK economy.

Mr. Kretinsky made his fortune in the energy industry but has diversified his interests into retail and logistics. He owns 10% of Sainsbury’s and 25% of West Ham football club. The Department of Business and Trade would expect any bidder for the Royal Mail Group to engage with ministers.

There are still several stages to go before any takeover would become fully-binding. Shareholders will vote on the deal at IDS’s next annual general meeting in September. Mr. Kretinsky has expressed his commitment to the employees and citizens who rely on Royal Mail’s services every day. The future of the UK postal service remains a topic of concern for stakeholders.