How did the new owner of Royal Mail become a billionaire?

Introducing the new owner of Royal Mail - Daniel Kretinsky, a Czech billionaire who has made history by becoming the first foreign owner in the postal service's 500-year existence. His company, EP Group, has successfully sealed the deal for £3.6 billion, just in time for the busy Christmas period. This news comes on the heels of Royal Mail being fined £10.5 million for missing delivery targets and facing criticism for raising stamp prices and considering cutting Saturday deliveries.

But who is Daniel Kretinsky and why did he want to take on the postal service? Let's find out. At 49 years old, Daniel is known as the 'Czech sphinx', a moniker that reflects his quiet and inscrutable demeanor. His father is an informatics professor, while his mother is a former justice of the Constitutional Court of the Czech Republic. He also has a stepfather who is a photographer.

Daniel's business career began in 1999 when he joined the investment group J&T as a lawyer. Over the years, he climbed the ranks and became a partner in 2003. According to the Sunday Times Rich List, his net worth is £6 billion, a staggering increase of £2 billion in just one year. He is currently in a relationship with Anna Kellnerová, the daughter of the late Petr Kellner, who was the richest man in the Czech Republic before his passing in 2021.

But how did Daniel make his fortune? He has built his empire in the energy industry and has assets in various countries, including the Czech Republic, Germany, Italy, Slovakia, the Netherlands, and the UK. One of his most notable investments is Eustream, a gas transportation company that operates pipelines through Ukraine, the Czech Republic, and Slovakia. Daniel also has a keen interest in football and owns several clubs, including his childhood team Sparta Prague, as well as a 27% stake in West Ham United. He has also invested in well-known British brands such as Sainsbury's and Footlocker. On a more luxurious note, Daniel owns a 25% share in an exclusive private island resort in the Maldives called Velaa. And let's not forget his lavish 15-bedroom mansion in Hampstead, London, which he bought for £65 million in 2015 and once rented out to none other than Justin Bieber.

So why did he want to buy Royal Mail? Well, it turns out Daniel already had a 27% stake in the company's parent company, International Distribution Services (IDS), through EP Group. In May, they agreed on a deal worth £3.6 billion, including debt, but needed approval from the UK government before finalizing it. When asked about the acquisition, Daniel mentioned his plans to modernize Royal Mail, including investing in services like parcel lockers to compete with retail giants like Amazon, Evri, and InPost. Furthermore, EP Group is also supportive of IDS's efforts to reform the universal service obligation, which they believe has hindered Royal Mail's growth in the face of intense competition in the parcels market.

Of course, such a significant change in ownership has raised concerns and attracted scrutiny from various parties. However, the government has given its seal of approval, considering the national importance of Royal Mail and the postal service in the UK. To protect Royal Mail's interests, Daniel and IDS have agreed to certain commitments, such as maintaining the company's postal service obligations and preserving its UK identity. Any significant changes in ownership, location, or tax residency will also require government approval.

In conclusion, Daniel Kretinsky's takeover of Royal Mail marks a new chapter in the postal service's long history. As the new foreign owner, he aims to modernize the company and make it more competitive in the ever-evolving market. Only time will tell what changes will be made, but for now, Royal Mail remains a vital part of the UK's infrastructure, delivering letters and parcels to its citizens.

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