NEW OWNER: No change to Royal Mail, Kretinsky pledged
Photo credit: Flickr/Kai Hendry
Royal Mail s parent company International Distributions Services (IDS) has agreed to a £3.57 billion (€4.2 billion) takeover by Daniel Kretinsky.
The Czech billionaire, who has a stake in Sainsbury’s and West Ham FC, is already IDS’s largest shareholder through his company EP Group and will acquire the 73 per cent of Royal Mail that he does not yet own.
“The EP Group has the utmost respect for Royal Mail’s history and tradition,” declared a statement from the man known as the Czech Sphinx. “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.”
The deal includes the legal obligation to maintain Royal Mail’s Saturday deliveries and the first class one-price-goes anywhere pledge. Kretinsky has also guaranteed that he would protect the Royal Mail brand, which goes back 500 years, and that there would be no job cuts. The company will retain its headquarters and tax-residency in the UK for at least five years, he stated.
The Royal Mail deal needs the approval of IDS shareholders at the annual general meeting in September and could still be obstructed under the UK’s National Security and Investment Act.
Meanwhile, although IDS shares rose by 3 per cent to 331p (€3.89) when markets opened on May 29, the price fell short of EP’s Royal Mail offer of 360p (€4.23) per share.
This suggested the markets were not entirely certain that the deal would definitely go through, City analysts said.
Sign up for personalised news
Subscribe to our Euro Weekly News alerts to get the latest stories into your inbox!
By signing up, you will create a Euro Weekly News account if you don’t already have one. Review our
Privacy Policy for more information about our privacy practices.
Originally from the UK, Linda is based in Valenca and is a reporter for The Euro Weekly News covering local news. Got a news story you want to share?
Then get in touch at [email protected].
Leave a comment Cancel reply
Your email address will not be published. Required fields are marked *
Known as the PEOPLE’S PAPER, Euro Weekly News is the leading English language newspaper in Spain. And it’s FREE!
Covering the Costa del Sol, Costa Blanca, Almeria, Axarquia, Mallorca and beyond, EWN supports and inspires the individuals, neighbourhoods, and communities we serve, by delivering news with a social conscience. Whether it’s local news in Spain, UK news or international stories, we are proud to be the voice for the expat communities who now call Spain home.
With around half a million print readers a week and over 1.5 million web views per month, EWN has the biggest readership of any English language newspaper in Spain. The paper prints over 150 news stories a week with many hundreds more on the web – no one else even comes close.
Our publication has won numerous awards over the last 25 years including Best Free Newspaper of the Year (Premios AEEPP), Company of the Year (Costa del Sol Business Awards) and Collaboration with Foreigners honours (Mijas Town Hall). All of this comes at ZERO cost to our readers. All our print and online content always has been and always will be FREE OF CHARGE.
Sign up for personalised news
Subscribe to our Euro Weekly News alerts to get the latest stories into your inbox!
By signing up, you will create a Euro Weekly News account if you don’t already have one. Review our Privacy Policy for more information about our privacy practices.
Close
