The acquisition of Royal Mail by Czech billionaire Daniel Křetínský has moved closer following the agreement on terms and conditions for a £3.57 billion offer by its owner.
International Distribution Services (IDS), the parent company of the postal service, announced its acceptance of a cash offer from Křetínský’s EP Group. The deal entails Křetínský, known for his energy ventures and ownership of a minority stake in a major gas pipeline from Russia to Europe, paying 360p per share for the remaining 73% of Royal Mail.
Upon market opening, IDS shares rose by 3% to 331p, indicating investor skepticism about the deal's certainty. Shareholders await the British government's decision on whether to review the sale under the National Security and Investment Act, granting ministers authority to block transactions involving critical national infrastructure.
IDS executives previously met with Business Secretary Kemi Badenoch to discuss the bid and reforms to the universal service obligation, ensuring delivery to every UK home six days a week. A shareholder vote is scheduled for the annual general meeting on 25th September. While Chancellor Jeremy Hunt mentioned a standard security review for the bid, the government expressed no fundamental opposition to EP’s ownership.
Labour, poised to lead the next government post the 4th July election, welcomed Křetínský's assurances and pledged to uphold them if elected.
