The Board of Directors of International Distributions Services, the British company that controls Royal Mail and Gls, has approved an acquisition offer for 72.5% of the company by EP Group, a holding controlled by Czech billionaire Daniel Kretinsky, for nearly five billion pounds (about 5.8 billion euros), including debts. Kretinsky is already a shareholder of Ids with the Vesa Equity Investment fund, which holds about 27.5%. If the transaction is completed, the Czech billionaire will gain full control of Ids.
The offer includes a commitment to maintain the name, brand, headquarters, and tax residence in the United Kingdom, as well as protections for employee benefits and pensions, which cover approximately 150,000 workers. However, the operation depends on Minister Kemi Badenoch, who could block it based on the National Security and Investment Act. In 2022, when Kretinsky increased his stake from 22% to 27.5%, the British government did not intervene.
Royal Mail has been a private company for ten years, but it remains committed to providing a universal postal service at a single price, delivering mail six days a week, from Monday to Saturday, and parcels from Monday to Friday. However, the company's performance has deteriorated over time, with delays in mail deliveries and increased debt. Ids has been able to offset losses thanks to profits from logistics and parcel delivery activities in Germany and Canada.
Meanwhile, Royal Mail has asked the regulatory authority Ofcom to adjust the universal service based on the change that has led to a drastic reduction in mail and an increase in parcels. The next step for the transaction will be a vote by Ids shareholders, scheduled for the annual meeting on September 25, 2024.
International Distributions Services was established in September 2023 and is listed on the London Stock Exchange. Daniel Kretinsky is 48 years old and has an estimated net worth of around seven billion euros. He is a very private man (nicknamed "the silent sphinx") and, according to the BBC, built his fortune in the energy sector in Central and Eastern Europe through a network of companies. Among his investments, besides Ids, are the retail chain Sainsbury's and the clothing chain Footlocker.
