Reader TTS

THE ONLY REGULATORY BAR STILL TO BE CLEARED RELATES TO FOREIGN DIRECT INVESTMENT IN ROMANIA, WITH EP GROUP CONFIRMING THAT WHILE THERE ARE NO MAJOR ISSUES EXPECTED, TALKS ARE

'PROGRESSING WELL' 11:28, 05 Mar 2025 The £3.6bn acquisition of Royal Mail by Czech billionaire Daniel Kretinsky is likely to be postponed until the second quarter due to a

political crisis in Romania. Kretinsky's EP Group has stated that the only remaining regulatory hurdle relates to its foreign direct investment in Romania. The group confirmed that

while no significant issues are anticipated with the Romanian investment, and discussions with authorities are "progressing well", clearance is now expected in time for the deal to

be finalised in the second quarter. EP Group had initially aimed to complete the takeover within the first three months of 2025. Kretinsky, often referred to as the "Czech

sphinx", needs to overcome this regulatory obstacle in Romania as part of his business operates within the country. Romania is currently experiencing political turmoil following the

cancellation of a presidential election last year due to allegations of Russian interference. Kretinsky's purchase of Royal Mail owner International Distribution Services received

approval from the UK Government in December of the previous year. This decision marked the first time the over 500 year old postal service would fall under foreign ownership. To alleviate

concerns surrounding his takeover, Kretinsky made several promises, including retaining the brand name and keeping Royal Mail's headquarters and tax residency in the UK for at least the

next five years. He also committed to safeguarding the company's universal service obligations. Article continues below Since the agreement, Ofcom has indicated that it's likely

to permit Royal Mail to abandon Saturday deliveries for second class letters and reduce overall postal delivery targets due to a decrease in letter mailing demand. In January, Ofcom stated

that it had provisionally concluded that reducing the second class letter service to alternate weekdays, while maintaining first class deliveries six days a week, would still meet the needs

of postal users. According to the regulator, this move could save Royal Mail between £250m and £425m annually.