British Government Approves Czech Billionaire’s £5.3 Billion Takeover of Royal Mail Owner
Deal Expected to Be Announced Early Monday Morning
The British government has approved a £5.3 billion (S$9 billion) takeover of International Distribution Services (IDS), the parent company of Royal Mail, by Czech billionaire Daniel Kretinsky. The approval is expected to be announced as early as Monday morning, according to the Financial Times.
Competition Regulator Remains Silent on the Matter
International Distribution Services (IDS) and the Competition and Markets Authority, Britain’s competition regulator, have not commented on the matter. However, the deal was expected to undergo intense government scrutiny, especially during an election year.
Royal Mail Struggles with Labour Strikes, Competition, and Loss of Market Share
Royal Mail, whose iconic red post boxes with the Royal Crest dot the country, has been struggling with labour strikes, competition, and loss of market share. Last week, Britain’s media regulator imposed a £10.5 million fine on Royal Mail for failing to meet delivery targets over the past year.
Golden Share to Be Retained by UK Government
As part of the final deal, the UK government will retain a so-called "golden share" in the postal service, giving it special rights over the governance of the company, according to the Financial Times report.
Conclusion
The approval of the takeover by Czech billionaire Daniel Kretinsky marks a significant development in the history of Royal Mail. The deal is expected to bring in new investment and resources to the company, which has been struggling to stay afloat. However, the government’s decision to retain a golden share in the company will ensure that the postal service remains in public hands.
FAQs
- Q: What is the value of the takeover?
A: The takeover is valued at £5.3 billion (S$9 billion). - Q: Who is the buyer of Royal Mail?
A: Czech billionaire Daniel Kretinsky is the buyer of Royal Mail. - Q: What is the government’s role in the deal?
A: The UK government will retain a so-called "golden share" in the postal service, giving it special rights over the governance of the company. - Q: What are the challenges facing Royal Mail?
A: Royal Mail is struggling with labour strikes, competition, and loss of market share.
