The £3.6 Billion Royal Mail Takeover Faces Delays Amid Romanian Political Crisis

The £3.6 billion takeover of the Royal Mail’s parent company, International Distribution Services, by Czech tycoon Daniel Kretinsky has hit delays due to political upheaval in Romania. The acquisition, involving EP Group, required final regulatory approval in Romania, but a crisis involving the country’s postponed presidential elections has disrupted the process.

Shareholders had been advised to expect the deal to be completed by the end of this month. However, EP Group announced in an update that the timeline for the takeover has been pushed back, with completion now anticipated in the second quarter of the year. The company reassured investors, stating that no substantial issues had been flagged by Romanian regulators.

Kretinsky, known for his calculated investment style and often referred to as the Czech Sphinx, has already secured necessary approvals from the British government, the European Union, and the United States. A key part of the agreement includes maintaining Royal Mail’s universal service obligation, financial soundness, and protecting its brand identity and pension surplus.

The political crisis in Romania stems from allegations of Russian interference in the viral social media campaign of candidate Calin Georgescu, previously considered the frontrunner in the cancelled November presidential elections. Prosecutors have since accused Georgescu of illicitly receiving funds from a mercenary group, which may result in his disqualification from the rescheduled election in May. These developments have delayed the regulatory work tied to Kretinsky’s acquisition.

International Distribution Services also owns GLS, a parcel delivery business that spans across Europe and North America. The company’s recommendation of the 370p-per-share offer by Kretinsky’s EP Group last May was widely seen as a lifeline for the Royal Mail’s operations, ensuring its long-term viability.

The Romanian political situation adds an unexpected layer of complexity to the deal, which has already undergone rigorous scrutiny under the UK’s National Security and Investment Act. Once regulators in Romania clear the acquisition, EP Group’s offer period will formally open, with shareholder tender expected to proceed swiftly.

Kretinsky, who holds stakes in major companies such as J Sainsbury and West Ham United football club, has built a reputation for turning energy assets into diversified investments in logistics, food, and media. His confidence in reviving Royal Mail underscores the strategic importance of the acquisition, even as unforeseen obstacles push back the timeline.