Sun, 13 Apr 2025

Sun, 13 Apr 2025 Royal Mail: The curious case of why a billionaire wants to buy what looks like a fading relic

From the end of April, the 500-year-old Royal Mail will be controlled by Czech billionaire Daniel Kretinsky who co-owns a football club - but why does he want it?
Background
* Royal Mail is considered vital national infrastructure and its sale required review under national security laws.
* The company has been struggling financially and has made significant losses in recent years. The Takeover
* Daniel Kretinsky's companies acquired a 60% stake in Royal Mail for £1.9 billion, making him the largest shareholder.
* The takeover was complex and required approval from various regulatory bodies. Regulatory Changes
* Ofcom, the UK's communications regulator, is reviewing the Universal Service Obligation (USO) which requires Royal Mail to provide a certain level of service across the country.
* The review may lead to changes in the frequency of second-class deliveries and the price of first-class mail. New Technologies and Investments
* Royal Mail has been investing in new technologies such as parcel lockers and digital postboxes, which allow customers to pick up packages at their convenience.
* The company aims to grow its locker network from 1,500 to at least 20,000 over time. Union Involvement
* The Communication Workers Union (CWU) was initially wary of Kretinsky's involvement but eventually secured commitments from him on issues such as job security and dividend payments.
* The CWU believes that Royal Mail should be in public hands but recognizes that the deal with Kretinsky is now likely to go ahead. Impact on Customers
* Customers may notice changes in the frequency of second-class deliveries, the introduction of new lockers, and potential price increases for first-class mail.
* The monarch's head will still appear on stamps, but Kretinsky is set to become the "king" of the UK's postal system. Overall, the article suggests that the takeover of Royal Mail by Daniel Kretinsky has significant implications for the company, its employees, and customers. While there are concerns about job security and the impact on services, the deal may also bring new investment and technological innovations to the company.
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