Business
Royal Mail faces historic takeover by Czech billionaire
THE ROYAL MAIL a cornerstone of British postal services for over 500 years, is poised for a historic change of ownership. The board of its parent company, International Distribution Services (IDS), has agreed to a formal takeover offer from Czech billionaire Daniel Křetínský. The £5 billion deal includes the assumption of existing debts.
Křetínský, who has expressed his “utmost respect” for the Royal Mail’s history and tradition, has committed to maintaining the company’s name, brand, UK headquarters, and tax residency. He has also vowed to safeguard employee benefits and pensions.
Despite these assurances, the deal will be subject to scrutiny under the National Security and Investment Act. Business Secretary Kemi Badenoch retains the power to examine and potentially block the takeover. The market reflects some scepticism, with Royal Mail’s shares trading below the 370p per share offered by Křetínský, indicating concerns over possible government intervention.
Chancellor Jeremy Hunt has indicated that the bid will undergo “normal” national security scrutiny but stated there is no opposition to the deal in principle. Shadow Business Secretary Jonathan Reynolds has stressed the importance of Royal Mail’s role in the UK and outlined conditions he believes Křetínský’s offer should meet.
In his latest update, Křetínský acknowledged the “enormous responsibility” of owning Royal Mail, highlighting his commitment to the company’s employees and the public who rely on its services. He detailed a series of commitments, including maintaining the universal service obligation, which mandates six-day letter deliveries and five-day parcel deliveries across the UK.
Royal Mail has faced significant challenges in recent years, with declining letter volumes and financial losses. IDS reported a small profit last year, solely due to its German and Canadian logistics businesses. In response, Royal Mail has suggested service reductions, such as cutting second class deliveries to every other weekday, to save up to £300 million annually.
The proposed takeover includes several protections, such as preserving the universal service, retaining the Royal Mail brand, and respecting union demands against compulsory redundancies until 2025. Keith Williams, IDS chair, stated that the board had secured a “far-reaching package of legally binding undertakings and commitments,” deeming Křetínský’s offer “fair and reasonable.”
Dave Ward, general secretary of the Communication Workers Union (CWU), has called for “more extensive assurance” regarding the future of the UK postal service. The CWU plans to engage with Labour and other stakeholders to advocate for a new ownership model that gives postal workers a say in key decisions.
The IDS board’s approval marks the beginning of a process that will include a shareholder vote at the next annual general meeting in September. The Department for Business and Trade expects any prospective buyer to engage with government officials.
Who is Daniel Křetínský?
Daniel Křetínský, 48, is a Czech businessman and lawyer with a net worth of £6 billion. He made his fortune in the Central and Eastern European energy sector and has diversified his investments into retail and logistics. His portfolio includes significant stakes in Sainsbury’s, Footlocker, and West Ham United, among others.
Known as the “quiet sphinx” for his discreet style, Křetínský owns luxurious properties in London and Paris and a share of the Velaa private island resort in the Maldives. His business interests in the UK are managed through Vesa Equity Investment, registered in Luxembourg.
The potential acquisition of Royal Mail by Křetínský represents a significant shift in the ownership of one of the UK’s most historic institutions. The coming months will reveal whether this deal will proceed and how it will impact the future of postal services in Britain.
For ongoing coverage and updates on this developing story, stay tuned to The Pembrokeshire Herald.
Business
Deposit Return Scheme diversion ‘illogical’ says Pembrokeshire brewery
TENBY HARBOUR BREWERY and local Senedd Member Samuel Kurtz have urged the Welsh Government to reconsider its decision to withdraw from a UK-wide Deposit Return Scheme (DRS) due to its insistence on including glass.
Earlier this week, Climate Change Secretary Huw Irranca-Davies announced that the Welsh Government would no longer participate in the development of a UK-wide DRS, citing issues arising from the UK Internal Market Act 2020. This decision is believed to be influenced by the Welsh Government’s plan to include glass in its scheme—a factor that contributed to the collapse of Scotland’s DRS in 2023.
The move has been met with frustration and anger from numerous organisations, who argue that this divergence will increase costs for Welsh producers and consumers.
Commenting on the matter, Samuel Kurtz said: “This decision is deeply frustrating, and to diverge from a UK-wide scheme shows that it is not one made with the best interests of Welsh consumers and producers at its core.
“The UK market is so interlinked that any decision which places Welsh businesses at a competitive disadvantage should not proceed. These calls from a range of industry and business representatives have been ignored by the Welsh Government.
“For the sake of our businesses and consumers, I urge the Welsh Government to reconsider its decision, align itself with the UK-wide scheme, and provide proper support to Welsh businesses.”
Industries, especially the micro-brewery sector, would be especially hit hard in Wales by the Welsh Governments choice.
Speaking following this announcement, Richard Johnson, Head Brewer at Tenby Harbour Brewery said:
“The brewing industry has had to tread a path through covid lockdowns, energy price increases, a cost of living crisis and rising wage and national insurance bills, making it increasingly difficult for brewers get good returns and re-invest in their businesses.
“Wales is a recycling nation, so a blunt ‘one size fits all’ approach creates additional logistical and financial burdens on the smallest producers, when the very largest producers are generating the majority of the recycling demand.
“It also seems illogical to diverge away from a UK wide scheme which will put Welsh brewers and drinks producers at a disadvantage.
“The UK and Wales has a proud brewing heritage, but adding in measures such as DRS to small brewers means that their time and money are directed to these activities, instead of using their time for innovation and R&D, of which the UK brewing scene is known and revered for.”
Business
Bluestone crowned ‘Best Small Company for UK Parks and Lodge Holidays’
BLUESTONE is celebrating a major win after being named the Best Small Company for UK Parks and Lodges Holidays at the prestigious British Travel Awards 2024.
The announcement was made at the prestigious awards ceremony this week, marking yet another significant achievement for the popular West Wales destination.
This award recognises Bluestone’s commitment to providing exceptional family holiday experiences at its 500-acre resort in the stunning Pembrokeshire Coast National Park.
“We are absolutely thrilled to receive this award,” said Bethan Rees, Head of Marketing at Bluestone. “It’s a testament to the hard work and dedication of our entire team, who create magical and memorable experiences for families all year round. We are incredibly grateful to every single one of our guests who voted for us and who choose to visit us year on year.
“When you look at the array of other finalists, the award demonstrates why we’re so proud of winning it. This is due to our continued investment, team, and commitment to environmentally sustainable tourism.”
This award builds on Bluestone’s impressive track record. It has consistently received high praise for its family-friendly facilities, commitment to sustainability, and dedication to providing outstanding customer service. Earlier this year, Bluestone was again recognised by Which? as one of the UK’s top holiday destinations and the best rated in Wales.
The British Travel Awards are the largest consumer-voted awards programme in the UK. Winning this award highlights Bluestone’s position as a leader in the family holiday market and reinforces its reputation as a top choice for unforgettable family getaways.
Bluestone, which employs over 800 people and is one of the largest employers in West Wales, is also committed to investing in its people and local community. It provides extensive training and development through its People Services team and the Bluestone Academy. In addition, it supports a wide range of local projects and initiatives through the Bluestone Foundation.
Business
Ascona CEO honoured at 2024 Allica Bank Great British Entrepreneur Awards
ASCONA GROUP, the seventh-largest independent forecourt operator in the UK and one of Wales’ fastest-growing companies for the past three years, has achieved a significant milestone. Darren Briggs, CEO and founder, has been recognised at the 2024 Allica Bank Great British Entrepreneur Awards, securing wins in two prestigious categories: ‘Scale-Up Entrepreneur of the Year – Wales’ and the inaugural ‘Randall Foundation Entrepreneur of the Year – Wales.’
Celebrating its 12th anniversary, the Great British Entrepreneur Awards highlight innovators and trailblazers shaping the UK economy. The newly introduced ‘Randall Foundation Entrepreneur of the Year’ award celebrates business leaders whose ventures align with the foundation’s mission to save lives, improve life chances, and positively impact local communities.
Pembrokeshire-based Ascona’s commitment to community support has been a cornerstone of its success. The company established The Ascona Foundation in 2020 and has since donated over £400,000 to local, national, and community organisations.
Reflecting on the achievement, Darren Briggs said:
“It is a great honour to be recognised with such prestigious awards at this year’s Great British Entrepreneur Awards.
“I am incredibly proud of Ascona and everything we have achieved over the years. This is another milestone for our business and a testament to the hard work, commitment, and ethos of ‘Team Ascona.’
“However, I am most proud of our charitable endeavours and the team’s dedication to giving back. This year, we remain committed to our fundraising efforts, including our partnership with Wales Air Ambulance, as we continue to support the communities we serve.”
Since its founding, Ascona Group has focused on driving innovation in the forecourt sector while fostering community engagement. This dual commitment to growth and giving back has positioned the company as a leader in its field.
Ascona’s charitable initiatives have supported various causes, enhancing lives across Wales and beyond. Through partnerships with organisations such as Wales Air Ambulance, the Group continues to make a tangible difference.
Darren Briggs’ recognition at the awards underscores Ascona’s impact on both the business world and the communities it serves.
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