Royal Mail bought by Czech billionaire Daniel Kretinsky for £3.57bn after parent firm agrees to takeover
ROYAL Mail has been bought by Czech billionaire Czech Daniel Kretinsky for £3.57billion after its parents firm agreed to a takeover.
International Distribution Services (IDS) said its board of directors has accepted the takeover bid from shareholder Kretinsky.
Kretinsky's EP Group already owns 27.6% of the IDS and made a formal offer for the business earlier this month.
Shareholders will vote on the deal at the firm's next annual general meeting in September.
IDS chairman Keith Williams said: "Our business has the potential to become a leading international logistics player.
"Both the IDS board and EP are acutely aware of their responsibilities to IDS and particularly to the unique heritage of Royal Mail.
"It has obligations as the designated Universal Service Provider of postal services in the UK.
"The IDS Board has negotiated a far-reaching package of legally binding undertakings and commitments.
"They provide our customers, employees and broader stakeholders with important safeguards.
"These cover the one-price-goes-anywhere Universal Service Obligation - including First Class letters still delivered six days a week.
"It also secures the financial stability and maintenance of the IDS Group including Royal Mail.
"It will maintain employee benefits and pensions, and ensure Royal Mail remains headquartered and tax resident in the UK."
The takeover comes after Royal Mail said it was mulling a new bombshell plan which would have seen 1,000 job losses.
Second-class letters would have been delivered only every other weekday under the cost-slashing plan.
In 2022-23 the company only delivered 73.7% of first class and 90.7% of second class mail on time.
Who is Czech billionaire Daniel Kretinsky?
DANIEL Kretinsky is a major investor in West Ham, Royal Mail and Sainsbury's
The "Czech Sphinx"', "as Kretinsky made his money through his energy firm company EPH, which he expanded into Britain.
EPH owns four UK power plants: Eggborough in North Yorkshire, Lynemouth in Northumberland, Langage in Devon and South Humber Bank in Lincolnshire.
In 2020, the law graduate increased his shares in Royal Mail - amassing a £250million stake in the historic FTSE250 company.
A month later, his holding company Vesa Equity Investment Sarl became the second largest shareholder of J Sainsbury, when they acquired a ten per cent stake in the supermarket chain.
Kretinsky also struck deals to own US trainer store Foot Locker, as well as American shopping centre Macy's.
He is now set to be the owner of Royal Mail following his successful takeover bid.
Although he keeps his personal life private, Kretinsky is reportedly dating Olympic showjumper Anna Kellnerova, who is 22 years his junior.