Czech billionaire acquires UK's Royal Mail in record foreign investment

The British government has approved Czech businessman Daniel Křetínský's acquisition of International Distribution Services (IDS), the parent company of the UK’s Royal Mail postal operator. The deal, worth GBP 3.6 billion (around CZK 108 billion), is the largest Czech investment abroad in history.

Křetínský will purchase IDS alongside his long-time associate and fellow billionaire Patrik Tkáč, leader of the J&T Investment Group. The approval follows a thorough review, addressing concerns about Royal Mail's strategic importance to the UK government. As part of the deal, the British government will keep a "golden share," meaning any future changes to Royal Mail's ownership will need government consent.

BBC News reports Křetínský as saying that "the talks with the UK government had resulted in unprecedented commitments and undertakings."

The sale is expected to close in the first half of 2025, pending approval from enough existing shareholders. In exchange for this approval, Křetínský has agreed to commitments, including maintaining the universal postal service, which ensures consistent mail delivery at one price across the UK, six days a week.

Like Czech Post, Royal Mail has faced financial struggles in recent years. Dave Ward, leader of the Communication Workers Union in England, has backed the deal, calling it "the foundation for the renewal of Royal Mail."

IDS also owns a highly profitable European parcels business ,GLS, which made over CZK 9 billion last year. 

Křetínský, known for his diverse investments, already holds a stake in the Dutch postal service PostNL and has significant retail interests across Europe, including chains in France, Germany (Penny Market), and Italy. His company, EP Group, has also expanded into energy, notably converting the large Eggborough power plant in the UK from coal to gas.

Besides his business endeavors, Křetínský is a minority owner of West Ham United Football Club and has stakes in the Sainsbury’s supermarket chain, British newspaper The Daily Telegraph, and European fashion retailer Zalando.

This move is part of a growing trend of Czech investments in the UK. Recently, energy firm Sev.en Global Investments, owned by businessman Pavel Tykač, acquired Celsa Steel UK in Wales, including a plant producing 1.2 million tons of low-emission construction steel annually.

In another notable deal, former Prime Minister Andrej Babiš’ healthcare company, FutureLife, announced in October the acquisition of a network of assisted reproduction clinics in the UK.