Britain’s Royal Mail owner agrees to $4.6 bln takeover by Czech billionaire Kretinsky

The owners of the centuries-old Royal Mail in Britain announced on Wednesday, May 29, that they had consented to the takeover of the company by Czech billionaire Daniel Kretinsky for 4.6 billion dollars (£3.57 billion).
International Distributions Services, the company that owns Royal Mail and the global parcel delivery network GLS, was valued at 370 pence per share in the formal offer.
Amidst labour strikes, competition, and dwindling market share, Royal Mail—whose recognisable red post boxes emblazoned with the Royal Crest are scattered across the country—has had difficulties lately. Due to this, the company’s shares have dropped more than 45% from its record intraday high of 607.7 pence in May 2018.
According to the UK government, any acquisition offer would go through “normal” national security review but wouldn’t be automatically rejected. The promises made by Kretinsky’s EP Group were warmly received by the opposing Labour Party.
In 2013, Royal Mail was privatized in one of the largest governmental sell-offs in British history. Approximately 25% of the shares are currently owned by Kretinsky.
With letter volumes declining over time, Royal Mail has been attempting to reposition itself as a parcel-led enterprise. Considering the company’s subpar service delivery, gradual restructuring, and escalating competition, Kretinsky asserts that private investment is essential.

IDS claimed to have negotiated a proposal that keeps Royal Mail’s UK headquarters and tax status, as well as the six-day-a-week, “one-price-goes-anywhere” postal service and staff perks and pensions.