Royal Mail owner has accepted a £3.57 billion ($4.6 billion) takeover bid from Czech billionaire Daniel Kretinsky, paving the way for the sale of one of Britain’s oldest and most iconic institutions to a foreign owner for the first time.
International Distribution Services, which owns the postal service, announced on Wednesday (May 29) that it had accepted a £3.70-per-share ($4.69) takeover offer from Kretinsky’s EP Group.
Royal Mail was privatised in 2013 after experiencing a sharp decline in demand for its services, recording a loss of £348 million ($445 million) for the fiscal year ending March 31.
Kretinsky’s acquisition comes at a politically sensitive time as the United Kingdom prepares for a general election on July 4.
The takeover will face a national security review, potentially by a new government. Polls suggest that the Labour Party is likely to win its first election since 2005, replacing the current Conservative administration.
Labour has shown a keen interest in the deal, which will affect thousands of workers.
Labour urges EP Group to keep Royal Mail HQ in the UK and collaborate with union
Earlier this month, in a letter to Křetínský, Labour’s business spokesperson Jonathan Reynolds urged the EP Group to provide firm guarantees that it would not relocate Royal Mail’s headquarters from the UK and would work closely with the workers’ union.
Jonathan Reynolds took to X and wrote, “Royal Mail is as British as it gets, and Labour will take the necessary steps to safeguard its undeniable identity and place in public life.”
A low-profile Czech national, Křetínský amassed his wealth through a vast network of European energy firms, retail businesses, and football clubs. The Bloomberg Billionaires Index estimates his net worth at $7.7 billion, and he owns a 27 per cent share in West Ham United Football Club.