Shareholders have approved the sale of Royal Mail’s parent company to Czech billionaire Daniel Kretinsky, marking a significant milestone for the 500-year-old institution.
The £3.6 billion deal, originally proposed a year ago, will transfer ownership of Royal Mail’s parent, International Distribution Services (IDS), to Mr Kretinsky’s EP Group.
On Wednesday, just over 80% of IDS shareholders voted in favour of the acquisition, setting the stage for the historic transition.
Mr Kretinsky affirmed his intention to prioritise “employees and customers at the heart of everything IDS does.”
As part of the agreement, EP Group is required to uphold the Universal Service Obligation (USO), which stipulates a uniform postal rate for all UK destinations.
Currently, the USO mandates delivery of letters six days a week and parcels Monday through Friday.
The company has pledged to maintain the USO while it retains ownership of Royal Mail. In an interview with the BBC last year, Mr Kretinsky committed to preserving this service—whatever its form remains—“for as long as I am alive”.
Keith Williams, IDS chair, said Mr Kretinsky’s assurances in the takeover “provide our customers, colleagues, and broader stakeholders with safeguards for the provision of the USO.”
A review of the USO concluded earlier this month, with Royal Mail suggesting to Ofcom that scaling back second-class deliveries to alternate weekdays could save up to £300 million annually and strengthen the firm’s prospects.
Nevertheless, the Greeting Card Association on Wednesday voiced “deep concern” over Royal Mail’s proposed changes.
“If the USO changes are implemented later this year, the small businesses we represent will become increasingly dependent on an uncapped, unregulated first-class postal service, placing considerable strain on both companies and their customers,” the association stated.
Mr Kretinsky has an estimated net worth of £6 billion, according to the 2024 Sunday Times Rich List.
In addition to his stake in Royal Mail, Mr Kretinsky owns 27% of West Ham United football club, 10% of Sainsbury’s, and companies operating a gas transmission service that continues—albeit at reduced levels and with EU consent—to transport Russian gas to Europe.
From the end of April, Royal Mail will be under the control of Daniel Kretinsky, a Czech billionaire and football club co-owner. But what motivates his interest in this British institution?
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