Royal Mail Accepts 5.3 billion takeover offer from Czech billionaire
Billionaire Daniel Kretinsky's acquisition approved by the Royal Mail owner.
Increased share value follows announcement.
The International Distributions Services (IDS), owner of Royal Mail, announced today that it will be acquired by Czech billionaire Daniel Kretinsky. The initial bid of 3.3 billion in March was increased to 4.6 billion on May 6th before finally settling on 5.3 billion.
The acquisition has been approved by IDS and is now subject to regulatory approval. If approved, the deal is expected to close in the fourth quarter of 2023. The takeover would be the largest ever of a UK company by a foreign investor.
Markets seem to think there is a chance the deal will be blocked by the current or any future government. This is due to the importance of Royal Mail to the UK's infrastructure and the concerns that a foreign investor could compromise its security. However, no official statement has been made by the government on this matter.
Royal Mail is a household name in the UK, and its privatisation in 2013 was controversial. The company has been struggling in recent years, with declining mail volumes and increasing competition from private couriers. Unions have warned against the sale, arguing that it could lead to job losses and a decline in service.
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