Wednesday, October 8, 2025
No Result
View All Result
Bitcoin With Money
  • Home
  • Business & Finance
  • Bitcoin
  • Crypto Updates
    • Crypto Updates
    • Crypto Exchanges
    • Altcoins
    • Ethereum
  • Stocks
  • Blockchain
  • Investing
  • Forex
  • FinTech
  • Startups
  • Technology
  • Home
  • Business & Finance
  • Bitcoin
  • Crypto Updates
    • Crypto Updates
    • Crypto Exchanges
    • Altcoins
    • Ethereum
  • Stocks
  • Blockchain
  • Investing
  • Forex
  • FinTech
  • Startups
  • Technology
No Result
View All Result
Bitcoin With Money
No Result
View All Result
Home Business & Finance

Czech billionaire Daniel Křetínský agrees to buy Royal Mail owner in £5.2bn deal

by admin
May 29, 2024
in Business & Finance
0
Czech billionaire Daniel Křetínský agrees to buy Royal Mail owner in £5.2bn deal
Share on FacebookShare on Twitter


Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Czech billionaire Daniel Křetínský has reached an agreement to buy the owner of Royal Mail in a deal valuing the group at £5.2bn, as he pledged to revive the fortunes of the former UK postal monopoly away from the glare of public markets.

Křetínský’s EP Group said on Wednesday it had agreed a takeover price of 370 pence per share for London-listed International Distribution Services, which owns Royal Mail and the international parcel business GLS, setting the path for intense political scrutiny of the proposal during a UK election year.

EP Group and IDS have spent the past few weeks hammering out the details of a deal for the former state-owned postal group, which since privatisation has been beset by strikes and growing competition from the likes of Amazon.

The move to place the 508-year-old postal service under foreign ownership comes with various commitments, including keeping its UK headquarters, recognising the postal workers’ union and maintaining Royal Mail’s obligation to deliver mail everywhere in the UK at the same cost. But these commitments have been made for just five years, with the Labour party and the union already vowing to protect the future of the group.

Jonathan Reynolds, shadow business secretary, said the Labour party, which is expected to win the general election on July 4, would “take the necessary steps to safeguard [Royal Mail’s] undeniable identity and place in public life”, adding that “Labour in government will ensure [EP Group’s commitments] are adhered to”.

Daniel Křetínský
Daniel Křetínský has pledged to revive Royal Mail’s fortunes © David W Cerny/Reuters

Dave Ward, general secretary of the Communication Workers Union, said: “We do welcome some of the commitments that have been made but the reality is postal workers across the UK have lost all faith in the senior management of Royal Mail and the service has been deliberately run down.”

He said the CWU would be “engaging with the Labour party and other stakeholders to call for a new model of ownership for Royal Mail where our members and customers have a direct say in key decisions”, adding that “this situation is a direct result of a failed and ideological privatisation over a decade ago”.

Jeremy Hunt, chancellor, previously said a bid for Royal Mail would be subject to “normal” scrutiny on national security grounds, but added that international investment in British companies was generally welcomed.

Křetínský, a lawyer-turned-energy tycoon, is already the largest shareholder in IDS with a 27.5 per cent stake. His IDS takeover bid marks his latest UK dealmaking spree, after he acquired stakes in supermarket chain J Sainsbury and English Premier League football club West Ham United.

Křetínský said that “IDS’s market is evolving quickly, and it must accelerate its transformation and investments into modernisation to keep up with the competition”.

EP Group’s offer follows years of losses and failures to hit performance targets at Royal Mail, which have seen IDS’s shares drop from more than 550p in 2018 to just 213p before the company’s first bid was announced in April.

While being required to meet Royal Mail’s historic obligation to deliver everywhere in the UK at the same cost, EP Group would face the challenge of declining demand for letters and growing competition for parcel deliveries.

Previous attempts by IDS to overhaul the business in response to that competition have been strongly opposed by postal workers, who walked out for 18 days in 2022 over plans to bring working practices closer in line with more modern rivals.

Line chart of Share price, pence showing IDS shares fail to reach offer price

Shares in IDS rose 3 per cent on Wednesday morning to 330 pence, significantly below the offer price, suggesting doubts over whether the deal will pass.

One top IDS shareholder said he was “disappointed” by the offer price, but warned that “if the deal doesn’t go through, you are stuck with a management team that didn’t want the company to remain public and no longer seem to believe there is much value”.

Analysts have previously suggested that a takeover of IDS could lead to a break-up of Royal Mail and the more profitable GLS, a move strongly opposed by the postal workers’ union. EP Group’s recommended offer, which includes restrictions on breaking up GLS from the broader IDS group for five years, comes just days after IDS said GLS had helped the group return to profit in the 12 months to March.

“The IDS board believes that the offer from EP is fair and reasonable given that there are uncertainties ahead and allows investors to realise value at a significant premium,” said IDS chair Keith Williams.



Source link

Tags: 5.2bnagreesBillionaireBuyCzechDanielDealKřetínskýmailOwnerRoyal
No Result
View All Result

LATEST UPDATES

  • Strategy’s Bitcoin Near to Rivaling Tech Giants’ Treasuries
  • Will Business Productivity Rise or Fall in the Age of Artificial Intelligence? 5 Ways to Capture Hybrid Productivity
  • Amazon Prime Day slashes hundreds off 2025 MacBooks – these are the deals I’d get before they’re gone
  • ‘High Potential’ Release Schedule: When Does Season 2, Episode 4 Hit Hulu?
  • Is this one of the best FTSE 100 quarterly-paying dividend stocks?
  • Why You Don’t Feel Rich
  • Claude vs GPT-5 vs Gemini: Live Gold Trading Experiment Week 1 – My Trading – 7 October 2025
  • A7A5 under fire as EU weighs sanctions on ruble-pegged stablecoin
  • Today’s NYT Mini Crossword Answers for Oct. 7
  • Grayscale’s innovation brings staking to US crypto ETFs

Bitcoin With Money is proudly powered by WordPress