Royal Mail owner agrees to £3.57bn takeover

ROYAL Mail owner International Distribution Services (IDS) said it has agreed to a £3.57bn takeover offer from Czech billionaire Daniel Kretinsky’s EP Group.

The offer would see EP Group buy IDS for 370p per share, while offering a series of “contractual commitments and intentions” to protect public service aspects of the Royal Mail.

IDS said if the deal goes through Royal Mail would continue its universal service obligation to one-price-goes-anywhere first-class post six days a week, and keep the company’s branding and UK headquarters.

It also said it would protect existing employment rights of all IDS staff, and that there is “no intention to make any material changes to overall headcount or reductions in the number of frontline workers” beyond existing plans.

IDS chairman Keith Williams said both parties “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.”

The potential sale has already attracted heavy scrutiny. Business Secretary Kemi Badenoch met IDS bosses earlier this month for talks on the deal, and underlined the need to protect services for the vulnerable, those in remote areas and small businesses. Shareholders will vote on the deal in September.