The owners of Royal Mail have agreed to a £3.6bn takeover bid by Czech billionaire Daniel Kretinsky. EP Group, operated by Kretinsky, already owns 27.6 per cent of Royal Mail’s parent company.
Parent company International Distribution Services (IDS) said its board of directors had approved the deal after a formal offer was made earlier this month. It has said the agreement included a series of “contractual commitments” to protect public service aspects of the Royal Mail, including the USO for first-class post six days a week. It has, however, seemingly not secured commitment to the current USO for second-class mail delivery, six days a week, which has been under review by Ofcom.
Shareholders will vote on the deal at IDS’s next AGM in September.
It can also be expected that there will be in-depth scrutiny over the terms of the takeover and its potential impact on Royal Mail employees, national security, as well as the future operation of the national delivery service and its adherence to the terms of the USO. It is understood that assurances have been made that Royal Mail’s HQ will remain in the UK, with no reduction in the number of front-line workers, and that there are no planned changes to its branding.
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