The European Leaders
Thursday, May 30, 2024
London – The Royal Mail acquisition was confirmed by its parent company, International Distribution Services (IDS). Furthermore, IDS chairman Keith Williams said in the statement, “The IDS Board believes that the offer from EP is fair and reasonable given that there are uncertainties ahead and allows investors to realise value at a significant premium.”
Czech billionaire Daniel Kretinsky’s investment group, EP Group, is acquiring Britain’s 500-year-old Royal Mail for £3.57 billion ($4.6 billion). This marks the first time a foreign owner will take over this iconic British institution, sparking concerns about the future of Royal Mail’s workers, its role as a public service, and its national identity.
To quell these anxieties, Kretinsky has pledged to uphold several key commitments. These include maintaining employee benefits and pensions, keeping Royal Mail’s headquarters in the UK, and upholding its “universal service obligation,” which guarantees letter delivery six days a week across the entire country for a flat fee.
“The acquisition is a direct result of a failed and ideological privatisation over a decade ago mixed with the blatant mismanagement of the company in recent years,” said Dave Ward, General Secretary of the Communication Workers Union.
The acquisition comes at a politically sensitive time as the UK gears up for its general election on July 4. The Labour Party, which is expected to win the election, has expressed keen interest in the deal. Labour has indicated that it will likely take steps to ensure Royal Mail retains its British identity and continues to fulfill its public service role.
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