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LONDON, England: The operation of the 500-year-old British Royal Mail, the UK’s postal service, has announced that it has accepted a $4.6 billion offer from Czech investor Daniel Kretinsky to operate the company’s day-to-day service.
Plans called for Kretinsky EP Group to purchase International Distribution Services, which owns Royal Mail.
The agreement calls for EP Group to ensure “contractual commitments and intentions” to guarantee high levels of service to the public.
The Royal Mail was privatized in 2013, but continues to struggle financially.
IDS said no major job losses were planned as part of the deal, which must be approved by shareholders.
Details of the buy-out include that the Royal Mail would maintain its name, branding, U.K. headquarters and continue to provide six-day-a-week mail delivery.
Kretinsky company, which previously held a 27 percent stake in the Royal Mail’s parent company, currently owns book publishing houses, a sports daily and magazines, and also co-owns French newspaper Le Monde.
Additionally, Kretinsky has ownership in companies including Macy’s, Foot Locker and U.K. supermarket chain Sainsbury’s.
Kretinsky also is a part owner in Premier League soccer team West Ham.
Kretinsky noted that his company “has the utmost respect for Royal Mail’s history and tradition, and I know that owning this business will come with enormous responsibility – not just to the employees but to the citizens who rely on its services every day.”
Dave Ward, general secretary of the Communication Workers Union, was less optimistic about the sale, noting, “The reality is postal workers across the U.K. have lost all faith in the senior management of Royal Mail and the service has been deliberately run down.”
“We will meet with EP Group next week and call for a complete reset in employee and industrial relations, the restoration of postal services and further commitments on the future of the company,” Ward said, according to the Associated Press.
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