Royal Mail

[PR1Berske]

New thread because two I could find are quite old (Royal Mail sell off and Royal Mail sale around the corner? )

From The Guardian:

It’s deadline day in the City today, with suitors for two UK-listed companies – mining giant BHP Billiton and Royal Mail – given until 5pm today to put up a formal bid, or walk away for six months.

And in the last few minutes, Czech billionaire Daniel Křetínský has announced a recommended cash offer for Royal Mail’s parent company International Distribution Services has been agreed.

IDS’s board has agreed to back a takeover worth £3.57bn, or 370p per share.

Earlier this month, IDS said it was minded to approve this improved offer from Křetínsy’s EP Group…

Royal Mail owner backs £3.5bn takeover offer by Czech billionaire

…and this morning Keith Williams, the chair of IDS, says the offer is”fair and reasonable” given the uncertainties ahead.

Williams says various guarantees have been reached with Křetínský, which will be presented to the government as soon as possible.

Those guarantees include ensuring that Royal Mail continues as the Universal Service Provider for five years after the deal is concluded, and maintaining a UK headquarters and tax residency for that period too (but what happens after that, you may wonder….).

Williams says:

The IDS Board has negotiated a far-reaching package of legally binding undertakings and commitments which provide our customers, employees and broader stakeholders with important safeguards.

These cover the provision of the one-price-goes-anywhere Universal Service Obligation (including First Class letters still delivered six days a week), the financial stability and maintenance of the IDS Group including Royal Mail, the maintenance of employee benefits and pensions, and ensuring Royal Mail remains headquartered and tax resident in the UK.

The deal could still face hurdles, though – chancellor Jeremy Hunt has indicted that the national security implications of such a bid would need to be scrutinised….

 

[Saul Goodman]

Does the Horizon software license transfer with the sale?

 

[Silas Loom]

Does the Horizon software license transfer with the sale?

Post Office has been independent of Royal Mail since 2012.

 

[Saul Goodman]

Post Office has been independent of Royal Mail since 2012.

Still asleep.

 

[dessiato]

Selling the last of the family silver.

 

[Silas Loom]

Still asleep.

There may well still be managers at RM who are tainted by Horizon, particularly in legal, so it’s a worthwhile point to raise.

 

[Silas Loom]

Selling the last of the family silver.

It’s already been sold, though. Last HMG shares flogged in 2015. Post Office is the one that remains in public hands, and that might be a trifle tricky to float just now.

 

[Maggot]

The Czech is in the post.

 

[brogdale]

Heard on the radio this morning that there's just a couple of things to tie up wrt to the Czech billionaire's purchase; union recognition and universal service.

 

[brogdale]

Whole show is doomed anyway; Czech fella only wants the company for the Dutch bit that it owns. He'll just asset strip what's left of RM

 

[brogdale]

Ha,


These "assurances" are for 24 months only and, of course, the LP will not want or be able to do anything to hold the billionaire's company to account. It's over for RM

 

[dessiato]

It’s already been sold, though. Last HMG shares flogged in 2015. Post Office is the one that remains in public hands, and that might be a trifle tricky to float just now.

I thought the government had a controlling interest in RM

 

[Pickman's model]

I thought the government had a controlling interest in RM

They did

 

[StoneRoad]

Can't see this further sell-off working well for RM customers nor the staff.

Really should be re-nationalised - and there should be a huge cut to the costs of buying postage stamps and sending small parcels, combined with a rededication to efficient delivery.

I haven't sent letters for a long time because it is too expensive and not really reliable.

 

[Chz]

No government is going to subsidise Royal Mail. Small parcel costs are in line with other options, and I can imagine that the reduction in mail volumes have really driven up costs - which are mainly manpower. Less letters per delivery person, but it still costs a fortune to have someone out doing it.

I'm not against the idea of it being a crown corporation, but it won't be cheaper for it.

 

[moochedit]

Post Office is the one that remains in public hands, and that might be a trifle tricky to float just now.

I think most post offices are franchises though so even that is semi privatised.

 

[Louis MacNeice]

I think most post offices are franchises though so even that is semi privatised.

Post Office and Royal Mail are different things; I thought we'd done this many times already?

Cheers - Louis MacNeice

 

[moochedit]

Post Office and Royal Mail are different things; I thought we'd done this many times already?

Cheers - Louis MacNeice

Yes i know that. I just meant the po branches are often franchises (whsmith run a lot of town center ones for example).

Fair enough thread is about royal mail though.

 

[Louis MacNeice]

No government is going to subsidise Royal Mail. Small parcel costs are in line with other options, and I can imagine that the reduction in mail volumes have really driven up costs - which are mainly manpower. Less letters per delivery person, but it still costs a fortune to have someone out doing it.

I'm not against the idea of it being a crown corporation, but it won't be cheaper for it.

Governments elsewhere invest in postal services.

The extraction of shareholder dividends has driven up costs, at the expense of investment in staff and infrastructure.

Letters per postie is a poor measure of work load; a much better one would be doors called at.

Being in line with the worst performing is a recipe for a race to the bottom in relation to terms and conditions.

And let's not forget the millions of consumers, who for a variety of reasons rely on letter post.

Cheers - Louis MacNeice (a proud postie)

 

[Chz]

Governments elsewhere invest in postal services.

And that's not an undesirable thing. But it isn't going to happen here, and it's fantasy to think otherwise.

In terms of small packages especially, no British government is going to undercut the commercial offerings via subsidy. Would probably land them in court. I wouldn't want to see them trying to compete with Evri. RM is a premium package service anyhow.

Clearly RM is run much worse than it was 10 years ago, but there really isn't a path back to how it was.

 

[Chilli.s]

Not reliable as it used to be and now dropped many counter services at the one I use

When it still works as it should its great, but more expensive

 

[PR1Berske]

Royal Mail to discontinue using post trains. DB to consult on consequences with Unions and government.

 

[two sheds]

Well canals are a lot cheaper for 2nd class.







Looks like a fucking stupid decision at first sight.

 

[cesare]

It'll affect sorting too ?

 

[Pickman's model]

Well canals are a lot cheaper for 2nd class.







Looks like a fucking stupid decision at first sight.

And second too

 

[cupid_stunt]

It'll affect sorting too ?

No, they ended that back in 2024.

However, wider economic factors, including increasingly effective mechanical sorting methods in comparison to the TPO's manual sorting by hand, along with operational safety concerns, made it increasingly unattractive to continue operating such services. Accordingly, the night of the 9/10 January 2004 saw the final TPO services run in Great Britain, with the carriages themselves used then sold for scrap or to preservation societies.

Travelling Post Office - Wikipedia

en.wikipedia.org

 

[farmerbarleymow]

That's a real shame - it was always nice to see the red trains on the network. And this will be no more.

 

[cupid_stunt]

That's a real shame - it was always nice to see the red trains on the network. And this will be no more.

Have I got news for you, they stopped using steam trains many, many years ago!

 

[farmerbarleymow]

Have I got news for you, they stopped using steam trains many, many years ago!

I'm sure you're old enough to remember when steam trains were invented.

 

[bcuster]

I am pleased to report that I mailed a letter to the UK via airmail. It arrived safely in 7 days, which days included a US holiday.

Bravo Royal Mail, well done!