Skip to content 
Search

Latest Stories

Billionaire Kretinsky nears deal to acquire Royal Mail

The deal will still have to be approved under the National Security and Investment Act

Billionaire Kretinsky nears deal to acquire Royal Mail
A Royal Mail delivery van leaves a sorting office depot on May 29, 2024 in Uxbridge, England. (Photo by Leon Neal/Getty Images)

THE iconic British postal service, Royal Mail, is on the verge of being sold to Czech billionaire Daniel Kretinsky's EP Group.

Sources familiar with the matter indicate that the deal is close to being finalised and could be officially announced within the next two weeks, the BBC reported.


To secure the acquisition, Kretinsky has reportedly made several significant concessions. He has pledged to preserve Royal Mail’s universal postal service, ensuring letters are delivered six days a week, from Monday to Saturday, and parcels from Monday to Friday. He has also committed to protecting the company’s pension surplus, keeping the Royal Mail name, headquarters, and tax residency in the UK for at least five years, and avoiding compulsory redundancies until at least 2025.

According to the report, talks are ongoing about potentially extending these guarantees to address concerns and solidify trust in the deal.

The Communication Workers Union (CWU), which represents a significant portion of Royal Mail employees, has been actively engaging with Kretinsky’s advisors.

While some union members remain cautious, the CWU has described the meetings as "honest and constructive" and confirmed that discussions will continue in the coming days.

The acquisition still requires approval under the National Security and Investment Act. However, government officials had already scrutinised Kretinsky’s background during a previous review when he became Royal Mail’s largest shareholder.

Daniel Kretinsky. (Photo by JOEL SAGET/AFP via Getty Images)

Business secretary Jonathan Reynolds addressed concerns about the billionaire’s alleged ties to Russia, dismissing them in Parliament and referring to Kretinsky as a "legitimate business figure" suitable for owning the company.

The £3.6 billion offer has been recommended to shareholders by the board of International Distribution Services (IDS), Royal Mail’s parent company. Shareholder support is expected to be sufficient for the deal to proceed.

This acquisition marks a critical turning point for Royal Mail, with both the government and unions keeping a close watch to ensure the company’s commitments to employees and customers remain intact under its prospective new ownership.

Who is Daniel Kretinsky?

A billionaire with interests in football clubs, media outlets, supermarkets and now the potential new owner of Royal Mail, Kretinsky retains a stubbornly low profile internationally.

The 48-year-old made his fortune in the energy industry, where he controls one of Central Europe's largest groups, EPH.

But in recent years he has also become a major player in France's media scene and amassed a fortune estimated by Forbes magazine at more than $9 billion (£7.2bn).

The deal is likely to push the reclusive billionaire further into the spotlight in Britain, where he already owned a stake in the postal service as well as 27 per cent of Premier League football club West Ham.

His move into football brought scrutiny from British tabloids, which labelled him the "Czech Sphinx" and detailed his purchase of a London home for £65 million ($85m) in 2015.

The newspapers also chronicled his relationship with Anna Kellnerova, a Czech showjumper 20 years his junior. The pair have since split up.

Kretinsky has otherwise kept his private life out of the headlines, though he has offered some insights into his business strategy.

He told Forbes in an interview last year that Britain, France and Germany were the most important countries for his company -- and he appreciated questions would be asked about him.

Kretinsky was born in the eastern Czech city of Brno and raised during the slow collapse of communism. He is known in his homeland for his energy interests, as well as ownership of football institution Sparta Prague.

His stepfather is a prominent art photographer and his mother served on the country's constitutional court between 2004 and 2014.

Colleagues and collaborators portray him as an extremely intelligent businessman and hard worker who often sends mails to staff in the early hours of the morning.

(with inputs from AFP)

More For You

Raynor Winn

The controversy, now widely referred to as The Salt Path scandal

Getty Images

Raynor Winn calls Salt Path scandal claims 'highly misleading' amid backlash

Highlights

  • The Salt Path author Raynor Winn calls media claims “highly misleading”
  • Allegations published in The Observer raise doubts about key memoir details
  • PSPA charity ends relationship with Winn and her husband Moth
  • Winn pulls out of Saltlines tour but is still scheduled for literary events

Author rejects claims as legal advice sought

Raynor Winn, the author of the best-selling memoir The Salt Path, has strongly denied accusations that parts of her book are fabricated, describing recent media coverage as “highly misleading” and confirming that she and her husband are taking legal advice.

The controversy, now widely referred to as The Salt Path scandal, follows an Observer report that disputes aspects of the memoir’s central narrative, including the timeline and medical diagnosis that prompted the journey at the heart of the book.

Keep ReadingShow less
Red Bull sacks Christian Horner after 20 years

Red Bull Racing's British team principal and CEO Christian Horner. (Photo by JOE KLAMAR/AFP via Getty Images)

Red Bull sacks Christian Horner after 20 years

CHRISTIAN HORNER is to leave his role as Red Bull team principal with immediate effect after 20 years, the Formula One team announced on Wednesday (9).

The 51-year-old Englishman has occupied the role ever since the team started out in the championship.

Keep ReadingShow less
Air India flight crash
Air India's Boeing 787-8 aircraft, operating flight AI-171 to London Gatwick, crashed into a medical hostel complex shortly after take-off from Ahmedabad on June 12.
Getty Images

Investigators focus on engine fuel controls as Air India crash report nears release

Highlights:

 
     
  • Investigators are focusing on fuel control switches in the Air India crash.
  •  
  • The London-bound Boeing 787 Dreamliner crashed shortly after takeoff from Ahmedabad.
  •  
  • A preliminary report is expected by Friday, around 30 days after the crash.

A PRELIMINARY report into the Air India crash that killed 241 people in June is expected by Friday, three sources familiar with the matter told Reuters.

Keep ReadingShow less
Johnny Depp

Johnny Depp attends the "Modì, Three Days on the Wing of Madness" Screening at the Red Sea International Film Festival

Getty Images

Johnny Depp says Warner Bros. pushed him to ''retire'' from 'Fantastic Beasts' after libel case

Highlights:

  • Johnny Depp says Warner Bros. asked him to resign from Fantastic Beasts in 2020, but he felt they wanted him to retire.
  • The actor had just lost a libel case against The Sun, which referred to him as a “wife-beater.”
  • Depp was replaced by Mads Mikkelsen in The Secrets of Dumbledore (2022).
  • He has now returned to directing after 20 years with his new film Modì, releasing on 11 July in the UK.

Hollywood actor Johnny Depp has opened up about being removed from the Fantastic Beasts franchise, saying he felt the studio’s request for his resignation was effectively a push into retirement. Depp made the comments in a recent interview while promoting his new directorial project Modì: Three Days on the Wing of Madness.

In 2020, shortly after losing a high-profile libel case against The Sun over claims of domestic abuse during his marriage to Amber Heard, Depp was asked to step down from the Harry Potter spin-off series. Speaking about the moment, Depp said, “It literally stopped in a millisecond, like, while I was doing the movie. They said, ‘We’d like you to resign.’ But what was really in my head was, they wanted me to retire.”

Keep ReadingShow less
Martin Lewis warns shoppers

Lewis clarifies legal rights for online and in-store purchases

iStock

Martin Lewis warns shoppers about misleading return policies at 30 UK retailers

Highlights

  • Martin Lewis flags incorrect return rights information on 30 retail websites
  • Retailers include New Look, The Range, and Selfridges
  • Lewis clarifies legal rights for online and in-store purchases
  • Trading Standards to be alerted following MoneySavingExpert.com investigation

Martin Lewis highlights return rights confusion

Money-saving expert Martin Lewis has issued a warning to UK consumers after uncovering misleading returns information on the websites of 30 major retailers, including New Look, The Range, and Selfridges.

Speaking on ITV1's Good Morning Britain, Lewis explained that several retailers are presenting incorrect information about return rights for online shoppers — in some cases, underplaying the legal protections customers are entitled to.

Keep ReadingShow less