Czech Billionaire Acquires Historic Royal Mail in $4.55 Billion Deal

International Distributions Services, parent company of Royal Mail, has been acquired by Czech billionaire Daniel Kretinsky for $4.55 billion. The 500-year-old company has faced recent struggles, including worker strikes and regulatory scrutiny. The deal marks a significant change for the historic postal service, now facing new leadership and challenges.

Royal Mail's parent company, International Distributions Services, agreed to be acquired by Czech billionaire Daniel Kretinsky for 3.57 billion pounds ($4.55 billion). Here is a brief history of the over 500-year-old company, which has recently struggled with worker strikes, lower volumes and increased regulatory scrutiny over missed delivery targets.

1516: King Henry VIII creates a country-wide postal network that operates only for the King and the Court for the next 119 years. 1635: King Charles I opens the service to the public.

1784: The service is christened Royal Mail as mail coaches become a familiar sight across the country. 1883: Parcel Post is launched, reflecting the need for personal and business customers to send more than just a letter.

1990: Royal Mail Parcels is re-branded as Parcelforce. 1999: Royal Mail acquires German Parcel, which is later re-branded as GLS (General Logistics Systems).

2010: Moya Greene becomes Royal Mail's first woman CEO. 2011: The Postal Services Act is passed, allowing private buyers to own up to 90% of Royal Mail and staff up to 10%.

2013: Royal Mail is taken public on Oct. 15, with a market capitalisation of 3.3 billion pounds. 2018: Rico Back, a GLS founding member, becomes CEO. His 1.8 billion-pound programme to turn Royal Mail profitable by 2024 is derailed by labour unrest and the COVID-19 pandemic.

2020: Rico Back steps down as CEO and Martin Seidenberg becomes CEO of GLS. Postal workers are key in delivering millions of COVID-19 testing kits across Britain.

Royal Mail is embroiled in a two-year-long dispute with the CWU, its largest labour union, over working conditions and workplace culture. 2021: Simon Thompson becomes CEO of Royal Mail.

2022: Royal Mail is renamed International Distributions Services. It posts a 1 billion pound annual loss due to sliding revenue and worker strikes. Vesa Equity, controlled by Kretinsky, increases its stake to over 25%, from 22%, with the British government's permission.

2023: Thompson steps down as CEO due to failed union talks. Seidenberg is named group CEO and workers accept a pay deal. April 2024: Heathrow executive Emma Gilthorpe named new CEO of IDS' Royal Mail business.

April, May 2024: Kretinsky's first non-binding bid is rejected and he sweetens his bid, which IDS accepts. (Compiled by Eva Mathews and Yamini Kalia in Bengaluru; Editing by Savio D'Souza)

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