The board of the company that owns Royal Mail has formally accepted a takeover offer for the historic 500-year-old organization.
Czech billionaire Daniel Kretinsky has solidified an offer of £5 billion, which includes assumed debts, for the company employing over 150,000 people. Kretinsky expressed “utmost respect” for Royal Mail’s history and tradition.
The offer comes with several commitments:
1, Retaining the Royal Mail name and brand
2, Keeping the UK headquarters and tax residency
3, Safeguarding employee benefits and pensions
Business Secretary Kemi Badenoch, who has yet to meet Mr. Kretinsky, has the authority to scrutinize and potentially block the deal under the National Security and Investment Act. While some believe the deal might face government opposition due to Royal Mail’s parent company shares trading at a discount compared to Kretinsky’s offer, others point out that the government did not intervene when the entrepreneur increased his stake in 2022.
Chancellor Jeremy Hunt clarified that any takeover bid would undergo “normal” national security scrutiny but would not be opposed in principle. Shadow business secretary Jonathan Reynolds emphasized Royal Mail’s historic role in the UK’s life and economy in a letter to Mr. Kretinsky.
In his update to investors, Kretinsky acknowledged the responsibility of owning the business, not only to employees but also to citizens relying on its services daily. The scale of commitments reflects their dedication to all stakeholders.