Royal Mail owner accepts Czech billionaire's takeover

LONDON

The owner of Britain's struggling Royal Mail said Wednesday it had accepted a takeover proposal from Czech billionaire Daniel Kretinsky worth 3.6 billion pounds ($4.6 billion).

It comes after Kretinsky's conglomerate EP Group formalized an improved offer for International Distribution Services (IDS).

"The IDS board believes that the offer from EP is fair and reasonable," IDS chairman Keith Williams said in a statement posted on the London Stock Exchange.

EP already has a stake of 27.6 percent in IDS, while the takeover is subject to shareholder and regulatory approvals.

The deal for the former state monopoly Royal Mail must also be approved by the government, which is on course to change hands in a general election due July 4.

Polls widely forecast the main opposition Labour party to win power after 14 years of rule by the Conservatives, currently led by Prime Minister Rishi Sunak.

His party privatized Royal Mail in 2013 after winning power three years earlier.

The postal operator has since seen its core letters business ravaged as consumers increasingly communicate online, which has conversely helped its international parcels business, GLS.

Britain's communications regulator Ofcom has proposed that Royal Mail cut delivery to five days, or even three days per week, potentially saving the company hundreds of millions of pounds.

Kretinsky said his group "has the utmost respect for Royal Mail's history and tradition," adding that owning a business with more than 500 years of history "will come with enormous responsibility, not just to the employees but to the citizens who rely on its services every day."