Royal Mail is poised to accept a £3.5bn takeover offer from Czech billionaire Daniel Kretinsky, paving the way for the postal service to fall into foreign ownership for the first time in its 500-year history.
The board of parent company International Distributions Services (IDS) is expected to recommend a firm offer from Mr Kretinsky, who must submit his proposal before a takeover deadline on Wednesday afternoon.
It had already said it is minded to accept the potential bid subject to undertakings on public interest matters, including no forced job cuts, maintaining the Royal Mail brand and keeping the company’s headquarters and tax base in the UK.
The deal, which values IDS at more than £5bn including debt, is likely to attract scrutiny from regulators given the sensitive nature of Royal Mail’s business.
Mr Kretinsky, who is known as the “Czech sphinx”, is already the largest shareholder in IDS through his vehicle EP Group. He is also an investor in Sainsbury’s and West Ham Football Club.
Chancellor Jeremy Hunt has said any potential takeover will be scrutinised under national security laws to ensure it does not pose a threat to critical infrastructure.
Mr Kretinsky was previously subject to a national security investigation when increasing his stake in the company above 25pc in 2022, though this was ultimately approved.
Business Secretary Kemi Badenoch has called for a meeting with the billionaire in anticipation of the potential deal, while shadow business secretary Jonathan Reynolds has also sought assurances.