In a historic development, the UK government has approved the 3.6 billion pound takeover of Royal Mail's parent company, International Distribution Services (IDS), by Czech billionaire Daniel Kretinsky's EP Group. This move marks the first time Britain's centuries-old Royal Mail will pass into foreign ownership. Royal Mail, which was privatised in 2013, has suffered in recent years from falling parcel volumes, delays in delivering mail and strikes over pay. According to BBC, the takeover of Royal Mail's parent company is expected to be finalised in the first quarter of 2025. As a result, Daniel Kretinsky, 49, will soon become the new owner of Britain's Royal Mail.
The billionaire has plans to modernise Royal Mail, with a focus on investing in innovative services to stay competitive in the market. He also aims to expand services such as parcel lockers, which will enable Royal Mail to better compete with e-commerce giants like Amazon, Evri, and InPost.
Who is Daniel Kretinsky?
Daniel Kretinsky, a prominent Czech billionaire businessman, lawyer and investor, was born in the eastern Czech city of Brno and raised during the slow collapse of communism. He is known for his diverse portfolio and strategic acquisitions in energy, media, retail, and football clubs. The billionaire controls EPH, a major energy conglomerate in Central Europe that owns power plants, gas infrastructure, and energy assets across Europe, as per Independent.
Mr Kretinsky also expanded into the media industry, owning stakes in several prominent publications.
He has significant stakes in Le Monde (France), Elle Magazine, and Marianne, among others. He is also a prominent figure in the world of football, owning several clubs, including his beloved Sparta Prague and holding a 27% stake in West Ham United.
In addition to his sports interests, Mr Kretinsky has invested in several iconic British brands. He owns a 10% stake in supermarket giant Sainsbury's and a significant holding in sportswear retailer Foot Locker. His luxury portfolio also includes a 25% stake in the exclusive Velaa private island resort in the Maldives, a popular destination for high-end travellers.
Further, he owns one of Britain's most expensive homes. In 2015, he purchased the 15-bedroom Heath Hall mansion, located in the affluent Hampstead area, for 65 million pounds. Interestingly, the mansion was reportedly once rented out to pop sensation Justin Bieber during one of his UK tours.
Despite his vast business empire and estimated $9 billion fortune, Mr Kretinsky maintains a relatively low international profile. He has been nicknamed the "Czech Sphinx" due to his low public profile and strategic business approach.
However, the acquisition of Royal Mail will likely bring Mr Kretinsky increased scrutiny in Britain. In a rare interview with Forbes last year, he shared insights into his business strategy, highlighting Britain, France, and Germany as key markets for his company. He also acknowledged that his growing presence in these countries would inevitably raise questions about his business dealings.
Colleagues and collaborators portray him as an extremely intelligent businessman and hard worker who often sends emails to staff in the early hours of the morning.
