Czech billionaire to acquire Britain’s 500-year-old ‘Royal Mail’

Royal Mail’s owner has accepted a £3.57 billion ($4.6 billion) takeover bid from Czech billionaire Daniel Kretinsky, making 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 possesses the postal service, said 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 it suffered a sharp drop in demand for its services and recorded a loss of £348 million ($445 million) for the year that ended on March 31.

Kretinsky’s move comes at a sensitive moment politically as the United Kingdom gears up for a general election on July 4.

The takeover will undergo a national security review, potentially under a new government. Polls indicate that the Labour Party is poised to win its first election since 2005, potentially replacing the current Conservative administration.

Notably, Labour has already taken a keen interest in the deal, which will have consequences for thousands of workers.

Earlier this month, in a letter to Křetínský, Labour’s business spokesperson, Jonathan Reynolds, urged the EP Group to provide cast-iron guarantees that it would not move the Royal Mail’s headquarters from the UK and would work closely with its 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 made his fortune through a sprawling empire of European energy companies, retailers and football clubs.

According to the Bloomberg Billionaires Index, his net worth is estimated at $7.7 billion, and he holds a 27 per centstake in West Ham United Football Club.

(With inputs from agencies)