Britain’s Royal Mail has agreed to a 3.6 billion pound ($4.6 billion) takeover bid from Czech investor Daniel Kretínský. The deal involves Kretínský’s EP Group acquiring International Distribution Services, the owner of Royal Mail, for 370 pence ($4.72) per share, valuing IDS at 5.2 billion pounds ($6.6 billion) including debt.
The acquisition includes commitments from EP Group to safeguard the public service aspects of the historic postal service, which has been in operation for over 500 years. Royal Mail, previously state-owned and privatized in 2013, has faced financial challenges in recent years.
No significant job cuts are anticipated as part of the takeover, which is subject to shareholder approval. Royal Mail is set to retain its name, branding, U.K. headquarters, and commitment to six-day-a-week mail delivery.
Kretínský, who already holds a 27% stake in Royal Mail’s parent company, has diverse business interests across Europe, including ownership of book publishing houses, media outlets, and investments in retail chains. He also has a stake in Premier League soccer club West Ham.
Expressing respect for Royal Mail’s heritage, Kretínský emphasized the responsibility that comes with owning such a vital service. The Communication Workers Union has welcomed certain commitments but expressed concerns about the state of employee relations and service quality at Royal Mail.
Looking ahead, the union plans to engage with EP Group to seek improvements in employee relations, service standards, and long-term commitments for the company’s future.
