Meet the enigmatic Czech billionaire who wants to buy Britain’s Royal Mail | CNN Business (2024)

Meet the enigmatic Czech billionaire who wants to buy Britain’s Royal Mail | CNN Business (1)

Czech billionaire Daniel Křetínský photographed in January 2020, in Paris.

London CNN

Royal Mail dates back to the Tudors. It has been operating a postal service in England since the reign of Henry VIII.

Now this most British of institutions is on the brink of being sold to a Czech billionaire, Daniel Křetínský, raising fears about the fate of thousands of workers and a key national service.

British logistics company International Distribution Services (IDS), which owns the loss-making postal service, said Wednesday that it was “minded to recommend” to its shareholders a £3.70-per-share ($4.69) takeover offer from Křetínský’s EP Group.

EP Group has until May 29 to convert its £3.5 billion ($4.4 billion) non-biding offer into a formal bid for IDS.

The likely sale would come after a difficult few years for Royal Mail, which was privatized in 2013. It has suffered a sharp drop in demand for its services, and losses have ballooned. Appeals to the government to be released from its obligation to deliver letters six days a week have fallen on deaf ears.

A Royal Mail delivery worker delivers mail in London in January 2021. Kirsty O'Connor/PA Wire/Zuma Press Related article Royal Mail is on the brink. Cutting letter deliveries to 3 days a week could save it

A spokesperson for the UK Department for Business and Trade told CNN that it had “no current plans” to change Royal Mail’s legally binding service obligations.

“Any future changes to Royal Mail’s operation will need to take into account the impacts on businesses and vulnerable consumers who rely on this vital service,” the spokesperson said.

So who is the white knight ready to take on a company that, during the last financial year, was losing £8 million ($10 million) a week?

The ‘Czech Sphinx’

Křetínský is a Czech national who has made his fortune through a sprawling empire of European energy companies, retailers and football clubs. He is worth an estimated $7.7 billion, according to the Bloomberg Billionaires Index.

The 49-year-old magnate began his career as a lawyer, before moving to a Czech investment bank, where he became a partner in 2003, according to EP Group’s website.

A few years later, Křetínský co-founded Energetický a průmyslový holding, or EPH, which owns European gas- and coal-fired power plants, commodities trading firms and freight companies, its website shows.

In 2016, the billionaire founded EP Group with business partner Patrik Tkáč. Through its investment arm Vesa Equity Investment, Křetínský has acquired stakes in big-name brands such as Foot Locker (FL) in the United States, FNAC in France, and supermarket Sainsbury’s in the United Kingdom.

He has come to be known as a mysterious personality given his reluctance to speak publicly about his business dealings. So elusive, in fact, that the Polish version of Newsweek magazine dubbed him the “Czech Sphinx” in 2019.

The Sphinx, a mythical creature originating in Greek mythology, requires travelers to solve a riddle before allowing them to pass.

But some fans of British soccer will already know his name.

Three years ago, the businessman bought a 27% stake in West Ham United Football Club through another of his investment firms. That makes Křetínský the club’s second-biggest shareholder, according its website.

‘As British as it gets’

The potential buyout of Royal Mail has stirred anxieties about the consequences of the iconic British institution coming under foreign ownership.

“As a rule, we welcome international investment in British companies,” UK finance minister Jeremy Hunt told reporters Friday.

“But we do always look at national security considerations and make sure that, in terms of our core infrastructure, there are no risks to those going forward, and any bid for Royal Mail would go through that normal process.”

Dave Ward, general secretary of the Communication Workers Union, which represents about 110,000 Royal Mail workers, said the potential takeover by Křetínský’s investment firm posed a “threat” to the future of postal services in the UK.

Royal Mail's logo features a crown, signifying its royal heritage. The company has been fined for failing to deliver letters and parcels on time. Peter Cziborra/Reuters Related article ‘Wake-up call.’ Britain’s Royal Mail can’t deliver letters and parcels on time

He asked that EP Group “immediately demonstrate” a commitment to working with the CWU and rule out any potential break-up of Royal Mail or diminishment of its workers’ pension pots.

“It cannot be right that a key part of national infrastructure is allowed to be owned by individuals or companies who have no vision for the future and no clear plan to put the workforce at the heart of turning Royal Mail around,” Ward said in a statement Wednesday.

Jonathan Reynolds, business spokesperson for the UK’s opposition Labour Party, urged EP Group in a letter to provide “cast-iron guarantees” that it would keep Royal Mail’s headquarters in the UK, and would work closely with its labor union.

“Royal Mail is as British as it gets, and Labour will take the necessary steps to safeguard its undeniable identity and place in public life,” he wrote in the letter, which he posted on X.

In a statement last month, EP Group said it was “a committed long-term investor in the UK” and believed that private investment in Royal Mail was “crucial” as the service faced escalating competition with multinational companies in the UK postal market.

“Royal Mail is an important national asset that would benefit from being able to take a longer-term view,” the firm said. “(EP Group) is prepared to support this iconic business as it transforms and rebuilds into a modern postal operator delivering high-quality service to its customers, stability to its workforce and sustainable financial performance.”

Ivana Kottasová contributed reporting. This article has been updated with additional information.

Meet the enigmatic Czech billionaire who wants to buy Britain’s Royal Mail | CNN Business (2024)

FAQs

Meet the enigmatic Czech billionaire who wants to buy Britain’s Royal Mail | CNN Business? ›

Meet the enigmatic Czech billionaire who wants to buy Britain's Royal Mail. Czech billionaire Daniel Křetínský photographed in January 2020, in Paris. Royal Mail dates back to the Tudors. It has been operating a postal service in England since the reign of Henry VIII.

Who owns Royal Mail? ›

(Alliance News) - Royal Mail owner International Distribution Services PLC on Friday said "positive momentum is building" as it reported an improvement in its financial fortunes.

Who is looking to buy Royal Mail? ›

Czech billionaire Daniel Křetínský might be the next owner of Royal Mail, after its parent company International Distributions Services (IDS) today revealed it would be 'minded to' accept a £3.5 billion offer from him..

Why is Royal Mail Royal? ›

Royal Mail is an established brand with more than 500 years of history, from its beginning as a postal service exclusively for the King and his Court to the international delivery service it is today.

Does the Queen still own Royal Mail? ›

An ancestor of QE2 instituted the Royal Mint in Saxon times; The same for Royal Mail, except it was a more recent ancestor, in 1516. Since its institution, the Royal Mint has become a government department. The Royal Mail was also a government department, but was sold into fully private ownership in 2015.

Who is the largest shareholder of Royal Mail? ›

Last week, it emerged that the postal firm's parent company, International Distributions Services (IDS), had received a preliminary offer from Daniel Křetínský, an energy tycoon whose company, EP Group, is its largest shareholder.

Is Amazon using Royal Mail? ›

Royal Mail delivers your parcel to a Post Office® branch or an Enquiry Office or Delivery Office of your choice for you to collect at a time that suits you. You can choose Standard Pickup or One-Day Pickup. Standard Pickup and One-Day Pickup to a Local Collect point is free for Amazon Prime members.

Who is the owner of Royal Mail Czech? ›

The owner of Royal Mail is poised to accept an improved takeover bid worth about £3.5bn from shareholder and Czech billionaire Daniel Kretinsky.

Who owns Royal Mail in 2024? ›

The Royal Mail Group Limited, trading as Royal Mail, is a British postal service and courier company. It is owned by International Distributions Services. It operates the brands Royal Mail (letters and parcels) and Parcelforce Worldwide (parcels).

Who does Royal Mail use in the USA? ›

We use our long standing relationship with the United States Postal Service (USPS) to get your deliveries there. This allows you to get your items delivered to your customers alongside their mail every working day of the week.

Why is Royal Mail changing its name? ›

Royal Mail plc was the holding company, but the duplicate name had the potential to cause confusion. Royal Mail announced its plans to change the topco name to International Distributions Services (IDS) in a trading update over the summer, to better reflect the group structure of two separate companies.

What is Royal Mail called now? ›

The company was established in September 2013, in anticipation of its initial public offering on the London Stock Exchange in October 2013. In July 2022, it was announced that the holding company responsible for both Royal Mail and GLS would change its name to International Distributions Services.

Who is the owner of UK Mail? ›

Parent company International Distributions Services (IDS) said the business had 'stabilised' as it revealed that Royal Mail was £348million in the red in the year to the end of March.

Is the post office and Royal Mail the same company? ›

Royal Mail and the Post Office are separate companies with independent Boards. Royal Mail is the company that delivers parcels and letters – the provider of the universal postal service. The Post Office is the nationwide network of branches offering a range of postal, Government and financial services.

Who bought UK Mail? ›

Deutsche Post DHL Group has bought independent UK postal operator UK Mail Group as it continues to expand its European parcel operations.

Who owns the US Postal Service now? ›

The USPS is often mistaken for a state-owned enterprise or government-owned corporation (e.g., Amtrak) because it operates much like a business. It is, however, an "establishment of the executive branch of the Government of the United States", (39 U.S.C.

References

Top Articles
Latest Posts
Article information

Author: Mr. See Jast

Last Updated:

Views: 6394

Rating: 4.4 / 5 (55 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Mr. See Jast

Birthday: 1999-07-30

Address: 8409 Megan Mountain, New Mathew, MT 44997-8193

Phone: +5023589614038

Job: Chief Executive

Hobby: Leather crafting, Flag Football, Candle making, Flying, Poi, Gunsmithing, Swimming

Introduction: My name is Mr. See Jast, I am a open, jolly, gorgeous, courageous, inexpensive, friendly, homely person who loves writing and wants to share my knowledge and understanding with you.