CWU calls for new business model and says commitments for takeover do not ‘go far, or long enough’

The union that represents workers at Royal Mail has called for a new business model for the company that would see workers given a stake in the company and pay tied to growing services and meeting certain social benefits.

Dave Ward, the general secretary of the Communications Workers Union (CWU), said that the potential takeover by the Czech billionaire Daniel Křetínský should provide a moment to overhaul how the company is structured, which could mirror that of US-style public benefit corporations.

The billionaire Daniel Křetínský, AKA the Czech Sphinx, is poised to buy the business – but what does he have planned?

The billionaire sometimes known as the Czech Sphinx appears to be on the verge of becoming the first person to buy the Royal Mail in its 500-year history.

The board of the British postal service’s parent company, International Distribution Services (IDS), has agreed to a £3.57bn takeover bid from Daniel Křetínský, meaning the deal has a strong chance of going through.

Czech tycoon’s private buyout of UK postal group would come with very limited assurances – and a weight of added debt

• Royal Mail owner agrees to £3.57bn takeover by Czech billionaire

There is much to fear from the takeover of Royal Mail by a private financier. It is fair to say that over the longer term, everything about the 500-year-old institution could now be at risk.

The string of commitments made by the Czech billionaire Daniel Křetínský in his bid for the postal service’s parent group, International Distribution Services (IDS) – accepted by the board on Wednesday – will be vulnerable to renegotiation after just a few years.

Cash offer from Daniel Křetínský’s EP Group still needs approval from shareholders and government

• Business live – latest updates

The takeover of Royal Mail by the Czech billionaire Daniel Křetínský has edged closer after its owner agreed terms and conditions on a £3.57bn offer.

In an update to the market on Wednesday, the postal service’s parent company, International Distribution Services (IDS), said it had accepted a cash offer from Křetínský’s EP Group.

Retaining Royal Mail’s proposals for the USO for a first-class postal service to anywhere in the country for a fixed price six days a week for a period of at least five years. IDS has suggested second-class post could be reduced to every other weekday.

Headquarters and tax residency to remain in the UK for five years.

Maintaining base salaries and benefits for staff for at least two years.

No changes to Royal Mail’s ownership for three years.

Deals this month could see two of the UK’s most prominent companies fall into foreign ownership

• Business live – latest updates

Shareholders in Royal Mail’s owner and in the mining company Anglo American are awaiting a final deadline on Wednesday for firm offers that could see two of the UK’s most prominent companies fall into foreign ownership.

Czech billionaire Daniel Křetínský has made an approach to International Distributions Services (IDS), which runs Royal Mail, while Australia’s BHP is trying to buy its rival Anglo American, a stalwart of London’s FTSE 100 index.

IDS says a change in ownership may lead to ‘material uncertainty’ over the company’s future

Royal Mail’s owner has warned that a potential £3.5bn bid by the Czech billionaire Daniel Křetínský could create risk around the company’s finances.

The warning came as the industry regulator Ofcom announced that it had opened an investigation into the parent group, International Distributions Services (IDS), for failing to meet its annual delivery targets for the second year in a row. Last year, Ofcom fined the company £5.6m for failing to meet its first-class and second-class delivery targets in 2022-23.