Royal Mail, ‘fabric of UK society’ agrees to US$4.6 billion takeover by Czech investor who owns Premier League’s West Ham
- The parent company of Royal Mail agreed to a US$4.6 billion takeover by Czech billionaire Daniel Kretinsky, setting the scene for a political battle over its future
- Former state monopoly Royal Mail was privatised in 2013 and has since seen its core letters business ravaged as consumers increasingly communicate online
The parent company of Royal Mail has agreed to a £3.6 billion (US$4.6 billion) takeover by Czech billionaire Daniel Kretinsky, setting the scene for a political battle over the future ownership of Britain’s postal service.
Shares in International Distribution Services (IDS) rose as much as 4.4 per cent to 335.20 pence (US$4.27) in early trading on Wednesday, still well below Kretinsky’s 370 pence-per-share (US$4.72) offer, reflecting investors’ caution on a deal going through.
The tycoon’s EP Group, whose main investments have come in the energy industry, has committed to continuing to deliver letters six days a week for at least five years.
Royal Mail is “part of the fabric of UK society and has been for hundreds of years,” Kretinsky said in a statement on Wednesday. “I know that owning this business will come with enormous responsibility.”
The deal, coming just days after a general election was called, is likely to be opposed by some UK politicians who have previously voiced their concern about Kretinsky already owning a large chunk of the former state-owned company. His stake is currently more than 27 per cent.
