Royal Mail accepts £3.57 billion takeover – London Business News | Londonlovesbusiness.com

Royal Mail owner International Distribution Services (IDS) have accepted a £3.57 billion takeover.

Czech billionair Daniel Kretinsky’s EP Group have placed the accepted bid for Royal Mail.

EP Group will buy IDS for 370p per share and there will be a series of “contractual commitments and intentions” which will protect public services.

IDS chairman Keith Williams said that they are both “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”.

He added, “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.”

Shadow business secretary Jonathan Reynolds 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.”

Communication Workers Union general secretary Dave Ward said today, “We do welcome some of the commitments that have been made but the reality is postal workers across the UK have lost all faith in the senior management of Royal Mail and the service has been deliberately run down.

“We will meet with EP Group next week and call for a complete reset in employee and industrial relations, the restoration of postal services and further commitments on the future of the company.

“We will also be directly engaging with the Labour Party and other stakeholders to call for a new model of ownership for Royal Mail where our members and customers have a direct say in key decisions and the creation of a golden share which will protect a key part of the UK’s communications infrastructure.”