Royal Mail takeover: bosses accept £3.57bn offer from Czech billionaire Daniel Kretinsky

Kretinsky’s EP Group plans to buy the IDS for 370p per share as part of the offer put forward into the table. It also includes a series of “contractual commitments and intentions” including keeping existing branding and UK headquarters.

The commitments also include continuing Royal Mail’s universal service obligation to one-price-goes-anywhere first-class post six days a week, and protecting employment rights of all IDS staff. The new prospective owner said that there is “no intention to make any material changes to overall headcount or reductions in the number of frontline workers” beyond existing plans.

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.”

Mr Kretinsky is already a 27% shareholder in IDS and is nicknamed the “Czech Sphinx”. He has a has investments in other UK firms including supermarket Sainsbury’s and London football club West Ham.

The takeover of Royal Mail, which was privatised in 2013, has concerned senior figures, including Business Secretary Kemi Badenock. Badenock met with IDS bosses earlier this month to discuss the deal.

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.”

It comes as Royal Mail comes under pressure, after being put under investigation by regulator Ofcom last week after the service delivered less than three-quarters of first-class post on time in the past year. Earlier this month, Royal Mail put forward plans to scrap second-class letter deliveries on Saturdays and cut the service to ever other weekday in a bid to turnaround the target failures.