Royal Mail takeover bid: Czech billionaire Daniel Kretinsky offers £5bn
The 500-year-old institution, Royal Mail, is facing a potential takeover by Czech billionaire Daniel Kretinsky. The board of the company that owns Royal Mail has agreed to a formal offer of £5bn, including assumed debts, for the historic organisation that employs over 150,000 people.
Kretinsky has expressed his “utmost respect” for the history and tradition of Royal Mail and has made commitments to retain the name, brand, UK headquarters, and UK tax residency. He has also promised to protect employee benefits and pensions.
However, the deal is not without scrutiny. Business Secretary Kemi Badenoch has the power to review and potentially block the takeover under the National Security and Investment Act. Markets are also speculating on the outcome, with shares trading at a discount to the offer price.
Chancellor Jeremy Hunt has stated that any takeover bid would be subject to national security scrutiny, but not opposed in principle. Shadow business secretary Jonathan Reynolds has emphasized the importance of Royal Mail in the UK economy and has outlined key undertakings that Kretinsky’s offer should include.
As the deal progresses, stakeholders, including the Communication Workers Union (CWU), are seeking assurances about the future of the postal service. The CWU is calling for a new ownership model where workers have a direct say in key decisions.
The offer from Kretinsky’s EP Group includes commitments to maintain the universal service obligation, keep the brand name and headquarters in the UK, and respect union demands for no compulsory redundancies. Shareholders will vote on the deal at the next annual general meeting in September.
Kretinsky, known for his wealth and diverse interests, has made his fortune in the energy industry and has expanded into retail and logistics. He owns stakes in companies like Sainsbury’s and West Ham football club.
The potential takeover of Royal Mail by Kretinsky represents a significant development in the future of the iconic institution, with stakeholders closely monitoring the outcome of the deal.
