Czech billionaire trying to buy Royal Mail takes 20% stake in German steel business

The Czech billionaire trying to buy Royal Mail has taken a 20 per cent stake in a German steel business.

Daniel Kretinsky, whose £3.2billion offer for Royal Mail owner International Distributions Services (IDS) has been rejected, has snapped up a slice of Thyssenkrupp’s steel unit for an undisclosed sum.

The German company said it was in talks with Kretinsky’s company EPCG about it taking a further 30 per cent stake – turning it into a 50-50 joint venture. 

Thyssenkrupp Steel Europe is Germany’s largest steelmaker and tied to the country’s rise as an industrial powerhouse.

However, cheaper Asian competitors, high power prices and a cooling global economy have put pressure on the business, leading to operating losses in four of the past five years.

Dubbed the Czech Sphinx, Kretinsky is co-owner of West Ham. He owns a 27.6 per cent in IDS and this month offered to buy the rest of the business for 320p a share.