UK’s Royal Mail Agrees to Takeover by Czech Billionaire

Czech investor Daniel Křetínský has made a bold move by acquiring Britain’s Royal Mail in a 3.6 billion pound ($4.6 billion) takeover deal. The deal, which values International Distribution Services (IDS), the owner of Royal Mail, at 5.2 billion pounds ($6.6 billion) including debt, has been accepted by the Royal Mail’s owner.

Křetínský’s EP Group will pay 370 pence ($4.72) per share for IDS and has promised to uphold the public service aspects of the 500-year-old postal service. Despite the privatization of Royal Mail in 2013 by the U.K.’s Conservative government, the postal service has faced financial challenges.

The deal does not foresee any major job losses and ensures that Royal Mail will retain its name, branding, U.K. headquarters, and commitment to six-day-a-week mail delivery. Křetínský, who already holds a 27% stake in Royal Mail’s parent company, has a diverse portfolio of business interests across Europe, including ownership of book publishing houses, newspapers, and stakes in major companies like Macy’s and Sainsbury’s.

While Křetínský has expressed his respect for Royal Mail’s history and tradition, the Communication Workers Union has raised concerns about the service being deliberately run down. The union plans to meet with EP Group to discuss employee relations, postal services, and the future of the company. This acquisition marks a significant development in the postal service industry and will be closely watched by stakeholders.