Czech billionaire to acquire iconic Royal Mail in £5bn deal
Czech billionaire Daniel Kretinsky will pay £5 billion for Royal Mail—a postal company employing 150,000 people. The Czech owns properties in London and Paris.
The board of Royal Mail has agreed to its acquisition. The 500-year-old organization will be bought by Czech Daniel Kretinsky, who offered £5 billion. This amount also includes the company's debts.
If the transaction goes through, Kretinsky will have to retain Royal Mail's name, brand, and British headquarters. It will also be impossible to pay taxes in another country. Moreover, employee and pension benefits will be protected.
Privatisation already happened
The BBC emphasizes that Kemi Badenoch, Secretary of State for Business, Energy and Industrial Strategy of the United Kingdom, could still block the transaction. The 44-year-old Badenoch can do this under the National Security and Investment Act to review and potentially block the transaction.
Chancellor of the Exchequer Jeremy Hunt has already announced that Kretinsky's offer will be scrutinized for national security. He added that he would not oppose the transaction.
Kretinsky himself emphasized that he is aware of Royal Mail's historical value and the responsibility that will fall on him.
The BBC reminds us that Royal Mail was privatized in 2013-2015. Previously, the state operator had a monopoly on letter delivery. Royal Mail is legally obliged to deliver letters six times a week (from Monday to Saturday) and parcels from Monday to Friday.
Post office problems
The British post office is not having its best days. "The company's performance has deteriorated, leading to significant financial losses, and customers regularly did not receive letters on time," notes the BBC.
"Parent company International Distribution Services (IDS) made a small profit last year, which was entirely generated by its German and Canadian logistics and parcels business, off-setting losses at Royal Mail," adds the BBC.
Daniel Kretinsky owns several properties in exclusive districts of London. He paid £65 million for one of them and rented it to pop star Justin Bieber for £25,000 weekly. Additionally, Kretinsky paid over €18 million for a townhouse near the Élysée Palace in Paris. He bought the townhouse from Russian oligarch Dmitry Rybolovlev, who owns the football club AS Monaco. Kretinsky also owns Sparta Prague and holds a 27% stake in the London club West Ham United.
