‘Czech Sphinx’ takes over Britain‘s post: UK government agrees to billionaire Křetínský’s acquisition of Royal Mail
The British government has agreed to the sale of the parent company of Royal Mail to Czech billionaire Daniel Křetínský. He will become the first foreign owner of the country’s centuries-old postal service.
Nicknamed the ‘Czech sphinx’ for his enigmatic and reclusive behaviour, Daniel Křetínský is set to become the new owner of Royal Mail, following the British government’s approval of the deal on December 16th. The UK is now wondering what the acquisition will mean for the icon of British society – and what’s in it for Křetínský himself.
Born in Brno in 1975, Mr. Křetínský studied at Masaryk University, first for a bachelor’s in political science, followed by a master’s and a doctorate in law. In 1999, he began working as a lawyer for the J&T Finance Group in Prague. Ten years later, he was instrumental in founding, as an indirect subsidiary of J&T, the company with which he is most closely associated: Energetický a průmyslový holding (EPH). Mr. Křetínský remains its CEO and 94% owner, and its umbrella company, the EP Group, is now adding the age-old Royal Mail to its extensive portfolio.
Why though would a Czech energy investor be interested in a postal service with a history stretching back to 1516? Petr Šimůnek, editor-in-chief of Forbes magazine, spoke to Czech Radio about the billionaire’s business strategy.
“I think this is a continuation of the story that Daniel Křetínský started in Western Europe, because this is yet another large company that is in trouble and that he is now taking over ... This is his biggest catch so far. I think Křetínský's great success is that he managed to pull off the whole transaction, although it must be said that it still has to be approved by shareholders, and that the whole story will probably be concluded by the end of the first quarter of 2025. But even so, it seems that this is really the biggest success he's achieved so far. He simply buys a company that is in trouble, gradually takes control of it, and then hopes and believes that he can find synergies within the EP Group.”
Mr. Křetínský, whose net worth was estimated by the Sunday Times Rich List at £6bn, generally keeps away from the public eye, although he is known to be something of an Anglophile. He bought a 27% stake in the London football club West Ham United in 2021 in a deal worth £150m, and holds a 3.05% stake in the British supermarket Sainsbury's.
The deal to buy Royal Mail’s existing parent company, International Distribution Services, was agreed in May, but had to undergo a governmental review, in accordance with the National Security and Investment Act. The deal included certain guarantees for employees and restrictions for its new owners; the headquarters and tax base of Royal Mail will have to remain within the UK for five years. The British government will also retain a ‘golden share’, allowing them to outvote the other shareholders and approve any major changes.
