UK-based International Distribution Services PLC (IDS) has reportedly received regulatory approval for its acquisition by Czech tycoon Daniel Křetínský, owner of EP Group. This development marks a fresh start for the Royal Mail brand, which has struggled with declining service demand and mounting challenges in recent years.
The company’s struggles have been exacerbated by a significant drop in service demand, labor strikes, and increased competition from e-commerce. Last week, Ofcom imposed a £10.5 million fine on IDS for failing to meet delivery targets, highlighting the need for change within the organization.
Křetínský has stated his intention to modernize Royal Mail’s brand after years of strained relations with postal workers and other issues. The acquisition deal included key commitments, such as retaining the UK headquarters, acknowledging the postal workers’ union, and upholding nationwide mail delivery at consistent prices.
Analysts have been cautious on IDS stock, with TipRanks issuing a Hold rating and analyst Andy Chu from Deutsche Bank raising his price target to 368p, implying a slight upside of 2.7% on the current share price level. The stock has gained 31.6% year-to-date, driven by hopes for a fresh start under new leadership.
Source: https://www.tipranks.com/news/uk-greenlights-czech-tycoons-royal-mail-acquisition