Royal Mail proprietor agrees to £3.6bn takeover by ‘Czech Sphinx’ Daniel Kretinsky

The house owners of Royal Mail have agreed to a £3.6bn takeover bid by Czech billionaire Daniel Kretinsky.

The firm’s mother or father agency International Distribution Services (IDS) stated its board of administrators had authorized the deal after a formal provide was made earlier this month.

It stated the settlement included a collection of “contractual commitments” to guard public service points of the Royal Mail – akin to its common service obligation to “one-price-goes-anywhere” first-class submit six days per week.

Mr Kretinsky’s EP Group already owns 27.6% of the enterprise.

Shareholders will vote on the deal at IDS’s subsequent annual common assembly in September.

It can be anticipated that the takeover will come underneath heavy scrutiny from regulators earlier than it could go forward.

The billionaire, who has been nicknamed the “Czech Sphinx”, reportedly because of his enigmatic nature and reluctance to talk in public, additionally owns elements of West Ham Football Club and Sainsbury’s.

The provide would see EP Group purchase IDS for 370p per share.

Read extra: Many are mystified why a Czech billionaire desires to purchase Royal Mail’s proprietor

IDS stated Royal Mail would maintain the corporate’s branding and UK headquarters underneath the deal.

The firm additionally insisted that the employment rights of all workers could be protected and that there was “no intention to make any material changes to overall headcount or reductions in the number of front-line workers”.

Unions and senior politicians have beforehand raised issues concerning the potential takeover of the postal service, which was privatised in 2013.

The Labour Party beforehand known as for a dedication for the Royal Mail to stay domiciled within the UK and maintain paying tax right here as a part of any deal.

Reacting to the announcement on Wednesday, shadow enterprise secretary Jonathan Reynolds stated: “These assurances are welcome that Royal Mail will retain its British identity and safeguard its workforce with no compulsory redundancies.

“Labour in authorities will guarantee these are adhered to.”

Business Secretary Kemi Badenoch met IDS bosses earlier this month for talks on the takeover, and is said to have urged its representatives to ensure services were protected for the vulnerable, those in remote areas and small businesses.

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General secretary of the Communication Workers Union, Dave Ward, stated: “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.

“We will meet with EP Group subsequent week and name for an entire reset in worker and industrial relations, the restoration of postal companies and additional commitments on the way forward for the corporate.”

He added: “We can even be immediately participating with the Labour Party and different stakeholders to name for a brand new mannequin of possession for Royal Mail the place our members and prospects have a direct say in key selections”.

Mr Kretinsky described the Royal Mail as “part of the fabric of UK society and has been for hundreds of years”.

He added: “The EP Group has the utmost respect for Royal Mail’s history and tradition, and I know that owning this business will come with enormous responsibility – not just to the employees but to the citizens who rely on its services every day.”

It comes after the Royal Mail put ahead proposed shake-up plans to Ofcom as a part of turnaround efforts, together with by slicing down on some deliveries.

The regulator additionally just lately launched an investigation after the corporate stated it delivered lower than three-quarters of first-class submit on time within the final 12 months.