Kretinský's Billion-Dollar Chess Move: Green Light for the Acquisition of International Distribution Services

The British government has approved Czech billionaire Daniel Kretinsky's takeover of Royal Mail owner International Distribution Services (IDS) for £5.3 billion (approximately $6.69 billion), as reported by the Financial Times. The formal decision is expected to be announced as early as Monday morning, according to people familiar with the matter. The negotiations between Kretinsky and IDS were concluded in May. The acquisition was closely monitored by the British government, especially in an election year. While neither IDS nor the UK's Competition and Markets Authority commented on inquiries, the deal does raise some questions. Royal Mail, known for its iconic red mailboxes with the royal crest, is currently facing challenges such as labor disputes, competitive pressure, and a declining market share. Recently, the UK's media regulator imposed a fine of £10.5 million on Royal Mail for failing to meet delivery targets last year. According to the final agreement, the British government reserves a special "golden share" in the postal service. This special share grants the government special rights in corporate governance, according to the Financial Times report.