Royal Mail ‘could not go on as it did’ says former boss backing takeover

Former Royal Mail boss Rico Back has thrown his weight behind Daniel Křetínský’s bid to take over the business, claiming the troubled postal giant “cannot go on like it did”.

Mr Back, who was chief executive of Royal Mail from 2018 to 2020, told The Telegraph that the deal would be good for Britain.

He hailed Mr Křetínský as a “very sharp thinker” who will be able to improve Royal Mail’s worsening reliability.

He said: “This will be a new age for Royal Mail. We don’t know whether it will be a great age or just a better age but the company cannot go on like it did.”

The comments come days after the board of parent company International Distributions Service (IDS) accepted the Czech billionaire’s £3.6bn offer.

The implications of such a crucial national asset falling into foreign hands has provoked alarm, with Chancellor Jeremy Hunt vowing to review the deal under national security laws.

However, Mr Back argued that Royal Mail has been effectively under foreign ownership since listing on the London Stock Market more than a decade ago.

He said: “To be clear, Royal Mail was never in the UK’s hands. Since it went public in 2013, its shareholders have been in America, Europe, wherever.

“I think that if the Government were to interfere, then this would harm the UK and its position in the world as a country where you can invest.”

As part of his takeover approach, Mr Křetínský has made a series of legally binding undertakings, including maintaining the one-price-goes-anywhere system and Saturday deliveries for first-class post.

While this has softened opposition to the bid, Mr Back believes Mr Křetínský should go further by promising all NHS letters be sent by first class if he takes over.

Not only will this ease concerns about older people not receiving hospital appointments, but Mr Back said it would help boost delivery performance more broadly.