Royal Mail update as Czech billionaire set to complete £3.6billion takeover deal

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Reports say energy tycoon Daniel Kretinsky has made further concessions to finally secure a takeover of Royal Mail’s parent company

The postal union is close to backing a £3.6billion foreign takeover of Royal Mail’s owner.

The Mirror understands that Dave Ward, general secretary of the Communication Workers Union, is due to have meetings with tycoon Daniel Kretinsky in the coming days. The pair have held a series of face-to-face negotiations since the summer with the aim of addressing the union’s core demands. A union spokesman described talks up to now as “constructive”. If the final issues can be resolved, it is possible the CWU will give its public support to the takeover next week.

Getting the union’s backing comes amid separate reports that the takeover of Royal Mail owner International Distribution Services is close to being finalised and could be completed in the next fortnight. This would mean that Royal Mail would fall into foreign hands for the first time in more than 500 years.

Secretive Mr Kretinsky, nicknamed the Czech Sphinx, has reportedly agreed to make extra concessions in order to clinch the deal. Mr Kretinsky is already the biggest shareholder in Royal Mail parent company International Distribution Services, with his Vesa Equity Investment arm controlling a 27.5% stake. He also owns stakes in Sainsbury’s and West Ham United.

The takeover will still need to be approved under the National Security and Investment Act, although a similar review when he upped his holding in IDS gave him the all-clear.

Mr Kretinsky has since committed to maintaining the one-price-goes-anywhere Universal Service”, which means it has to deliver letters six days per week, Monday to Saturday, and parcels Monday to Friday. In addition, he has agreed to maintain the Royal Mail brand name and keep Royal Mail’s headquarters and tax residency in the UK, but only for the next five years.

Mr Kretinsky is convinced that Royal Mail’s fortunes can be turned around by investing heavily in postal lockers. Labour Business Secretary Jonathan Reynolds called for safeguards over the deal when the party was in opposition. Speaking in front of MPs on Tuesday, Mr Reynolds referred to Mr Kretinsky as a “legitimate business figure” whose alleged links to Russia had already been reviewed and dismissed.

Royal Mail has more than 500 years of history, beginning as a postal service exclusively for the King and his Court. It was privatised in a controversial process that started in 2013. The company has since been hit by intense competition and industrial disputes. Last week saw bosses refuse to not rule out further job losses and stamp price rises, blaming a £120million national insurance increase due to the Budget.

The price of a first class stamp leapt 30p last month to £1.65. In 2012, before Royal Mail’s three-part privatisation in 2013 and 2015, it was 60p. A second class stamp now costs 85p.