Royal Mail<\/strong>, a cornerstone<\/strong> of the British postal service<\/strong> for over 500 years<\/strong>, is facing a historic change<\/strong>. With the government approving<\/strong> a foreign investor’s takeover<\/strong>, questions arise<\/strong> about its future<\/strong>, the assurances<\/strong> in place, and the impact<\/strong> on thousands of workers<\/strong>. Here, we examine the key details<\/strong> of this unprecedented shift<\/strong>.<\/p>\n\n\n\n
Daniel Kretinsky, known as the \u201cCzech Sphinx,\u201d<\/strong> is a billionaire investor with growing influence in the UK. He holds a 27% stake<\/strong> in IDS<\/strong>, Royal Mail’s parent company, and has notable interests in West Ham United Football Club<\/strong> and Sainsbury\u2019s<\/strong>. Kretinsky\u2019s investment vehicle, Vesa Equity Investment<\/strong>, is leading the \u00a33.6 billion acquisition<\/strong>, following scrutiny by the UK Government<\/strong>.<\/p>\n\n\n\n
Royal Mail\u2019s availability for foreign takeover has been shaped by significant milestones over the past decade, transitioning it from a public institution<\/strong> to a fully privatised company<\/strong>.<\/p>\n\n\n\n
This series of changes paved the way for the current takeover<\/strong> under UK corporate laws<\/strong>.<\/p>\n\n\n\n
Royal Mail’s journey to private ownership began in 2013<\/strong> when it was separated from the Post Office and listed on the London Stock Exchange<\/strong>. By 2015<\/strong>, the Government sold its final shares, making Royal Mail subject to market forces.<\/p>\n\n\n\n
In October 2023<\/strong>, Royal Mail Group rebranded as International Distribution Services (IDS)<\/strong>, solidifying its position as a listed public company, thus enabling the current takeover under UK corporate laws.<\/p>\n\n\n\n
The Government<\/strong> reviewed the deal under the National Security and Investment Act 2021<\/strong>, which allows intervention in transactions impacting national security. Given Royal Mail<\/strong>\u2019s critical role in the UK\u2019s infrastructure, the deal underwent thorough scrutiny.<\/p>\n\n\n\n