Royal Mail set to be sold for £3.5 billion with name at risk of changing in just five years

May 29, 2024 | by magnews24.com

Royal Mail parent firm International Distribution Services (IDS) said its board of directors has agreed to a £3.57 billion takeover offer.

Kretinsky’s made a formal offer for the business after initial proposals earlier this month.


Keith Williams, chairman of IDS, said: “IDS has the potential to become a leading international logistics player.

“Both the IDS board and EP are acutely aware of their responsibilities to IDS and particularly to the unique heritage of Royal Mail and its obligations as the designated Universal Service Provider of postal services in the UK.

“The IDS Board has negotiated a far-reaching package of legally binding undertakings and commitments which provide our customers, employees and broader stakeholders with important safeguards.

“These cover the provision of the one-price-goes-anywhere Universal Service Obligation (including First Class letters still delivered six days a week), the financial stability and maintenance of the IDS Group including Royal Mail, the maintenance of employee benefits and pensions, and ensuring Royal Mail remains headquartered and tax resident in the UK.”

Royal Mail sign

The entrepreneur Daniel Kretinsky made his fortune in the energy industry

PA

Jonathan Reynolds, Labour’s Shadow Business Secretary, commenting the development in the sale of Royal Mail, said: “Royal Mail is an iconic British institution with a unique place in our society and infrastructure.

“Labour will take the necessary steps to safeguard its undeniable identity and place in public life.

“These assurances are welcome that Royal Mail will retain its British identity and safeguard its workforce with no compulsory redundancies. Labour in government will ensure these are adhered to.

“While the Conservatives have ignored Royal Mail, Labour will ensure that it delivers once again for customers and postal workers.”

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