Royal Mail Sealed

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Koushik Korampalli

June 2, 2024

Written by Koushik Korampalli

Est read: 0 minutes

On Wednesday Royal Mail announced their acquisition deal worth £5.2bn
- The acquisition was made by Daniel Křetínský’s EP Global Commerce (EPGC)
  - The company will be taken private for £3.57bn
  - Křetínský, also known as the Czech Shpinx, will take £1.7bn of the company’s debt
- EPGC is an acquisition group founded in 2016
Royal Mail previously rejected an offer of £4.5bn in April
Concerns rose about the ethnocentrism of the ‘iconic British institution’.
- Royal Mail is 500 years old, being founded in 1635 by King Charles I
- Křetínský promised to preserve the branding for 5 years
- Alongside this its UK headquarters and tax residency will stay for the same period
- Many believe that the company will be vulnerable to massive changes after the 5 year period.
Rico Back, former chief executive of Royal Mail justified the takeover, arguing that since its listing in 2013 it was “Never in the UK’s hands” with shareholders across the globe.
- The Sphinx, already had a 27.5% stake in the company
Whether the Sphinx will be able to handle the job is yet to be seen.