In a recent development, the owner of Britain’s Royal Mail has accepted a takeover offer from Czech investor Daniel Křetínský. The deal, valued at 3.6 billion pounds ($4.6 billion), will see Křetínský’s EP Group acquire International Distribution Services (IDS), the company that owns Royal Mail, for 370 pence ($4.72) per share.
The total value of the deal, including debt, amounts to 5.2 billion pounds ($6.6 billion). As part of the agreement, EP Group has committed to protecting the public service aspects of the 500-year-old postal service. Despite the privatization of Royal Mail by the U.K.’s Conservative government in 2013, the company has faced financial challenges.
Under the terms of the deal, no significant job losses are anticipated, and 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 percent stake in Royal Mail’s parent company, has expressed respect for the company’s history and tradition.
While some have welcomed the commitments made by EP Group, Dave Ward of the Communication Workers Union highlighted concerns about the current state of postal services in the U.K. Moving forward, stakeholders will engage in discussions to address employee relations and further commitments to the future of Royal Mail.
