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Sources close to the sale of Royal Mail have stated that Czech billionaire Daniel Kretinsky’s EP Group is close to securing a takeover in the next two weeks. Kretinsky has made a number of agreements in order to acquire the company, with officials still due to review and approve the final deal through the National Security and Insurance Act. While certain sources have reportedly remained cautious of Kretinsky, the Communication Workers Union stated that meetings held between EP Group and advisors have been constructive.
Kretinsky has offered a variety of guarantees with a view to finalising the acquisition, such as maintaining the universal service and not touching the pension surplus. Kretinsky has also agreed to adhere to union demands of not enforcing compulsory redundancies, with negotiations ongoing to extend such commitments. The board of Royal Mail owner, International Distribution Services (IDS), has recommended Kretinsky’s £3.6bn offer to shareholders, with their acceptance of the deal expected to go ahead.
Kretinsky’s EP Group have declined to comment on the potential acquisition, although it’s believed that additional safeguards may be implemented. Such precautions reportedly include extending current guarantees currently in place, with the UK government being satisfied with Kretinsky’s suitability as head of the organisation. Speaking earlier this week, Business Secretary Jonathan Reynolds referred to the billionaire as a ‘legitimate business figure’ whose alleged links to Russia had already been dismissed during his tenure at IDS.
Despite the universal service obligation being currently reviewed, Royal Mail is still legally bound to provide the universal service, obliging the company to deliver letters six days per week, Monday to Saturday with parcels being delivered from Monday to Friday. Royal Mail’s performance has gradually deteriorated over recent years, in addition to concerns being raised by customers over lost or delayed deliveries. Through this period, the volume of mail being sent in the UK has also significantly dropped, in contrast, parcel deliveries have maintained their popularity
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