IDS takeover bid called in, CWU calls for ‘robust scrutiny’

The timetable for the offer has been suspended as a result.

In a statement issued on Friday (2 August), International Distribution Services said the situation was “as expected”.

“The relevant authorities are currently considering the offer and/or related antitrust and regulatory filings and are in active processes with Bidco,” IDS stated.

“As had also been anticipated… the Cabinet Office informed Bidco and IDS on 1 August 2024 that following the parties’ notification under the NSI Act the Chancellor of the Duchy of Lancaster has delivered a call-in notice under the NSI Act in respect of the Acquisition.

“The parties will continue to cooperate with the Cabinet Office as it exercises its functions under the NSI Act and assesses the acquisition in more detail.”

According to reports the probe will include Křetínský’s potential links to Russia via his other business interests, which include gas transmission firm EUStream.

In response to news that the bid had been called in, Communication Workers Union (CWU) general secretary Dave Ward said: “The UK needs the Labour government to robustly scrutinise the detail of this takeover offer.

“The contractual obligations negotiated between the failed current Royal Mail Board and Mr Křetínský are not strong enough to protect workers, customers and the crucial infrastructure that Royal Mail provides for our communities and the economy,” he stated.

“It’s time for a new business and ownership model which gives workers a greater say over the future direction of the company.”

Prior to the suspension Bidco had received acceptances for its offer from shareholders holding approximately 4.11% of the issued share capital of IDS.

Křetínský’s Vesa Equity Investment already held a 27.56% stake in the group.

The government does not comment on the details of specific investigations.

A Cabinet Office spokesperson said: “As an open economy, the government welcomes foreign trade and investment where it supports growth and jobs in the UK, meets our stringent legal and regulatory requirements, and does not compromise our national security.

“However, the government will not hesitate to use our powers to protect national security wherever we identify concerns.”

Shares in IDS have slipped by 1.16% today, and were at 340.60p at the time of writing (52-week high: 350.00p, low: 209.82p).

Bidco is offering £3.70 a share.

This is Money has reported that major shareholders are holding out because they believe that if Ofcom relaxes Royal Mail’s USO obligations the current offer price drastically undervalues the business.

The government review is expected to take around two months.