Czech Billionaire Křetínský Closes in on Deal to Buy British Royal Mail

The sale of Royal Mail to Czech billionaire Daniel Kretinsky’s EP Group is close to being finalized and could be confirmed in the next two weeks, according to sources close to the deal.

The BBC on Thursday cited sources close to the deal as saying that Kretinsky has agreed to make extra concessions in order to clinch the takeover.

The deal will still have to be approved under the National Security and Investment Act although officials stepped in with a similar review when he increased his stake in the company.

Kretinsky’s EP Group declined to comment to the BBC.

The entrepreneur has already offered the following guarantees in a bid to secure the deal. He has pledged to maintain the “one price goes anywhere” universal service and not to raid the pension surplus.

He has also said he will keep the brand name and Royal Mail’s headquarters and tax residency in the UK for the next five years and respect union demands for no compulsory redundancies to take place until 2025.

Křetínský’s offer values ​​the company Royal Mail at £3.6 billion (almost 110 billion CZK). The management of the company International Distribution Services (IDS), which owns Royal Mail, accepted the offer in May and recommended that its shareholders approve it.

The BBC said it is thought additional safeguards may include extending the duration of the guarantees he has offered.

Royal Mail can trace its history back to 1516 and currently employs more than 150,000 people. Křetínský has previously stated that he has the “utmost respect” for its history and tradition.

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