The business world is coming to terms with the impact the sale of the Royal Mail to a foreign business will have on the sector.
IDS agreed to sell the business to Czech businessman Daniel Křetínský for $4.5 billion.
One of the most significant acquisitions in the postal and logistics industry was when Deutsche Post acquired DHL in 2002.
This acquisition allowed Deutsche Post to expand its global logistics and express services, making DHL one of the leading courier and logistics companies worldwide.
Global logistics
But now the business sector’s attention turns sharply to the fact that a 500-year-old company, an institution in UK history, is changing hands. Royal Mail’s business woes have been in the news in recent months.
Most notably, is the fine imposed on the company last year by Ofcom, as the postal giant failed to meet delivery targets, which dropped by nearly 20% compared to last year.
Business sector ways in on Royal Mail
From a business perspective, ITVX reported IDS’ shares surged another 18% in Wednesday mid-afternoon trading.
The business sector is noticing this major news with interest. On social media pages like LinkedIn, people had their say:
“Royal Mail hasn’t been great for small businesses for a while now. The customer complains and leaves a negative review for a seller when the parcel has been lost, the tracking just stops working!” – Susan Bonnar (May 30)
There have been some concerns about the bid. Dave Ward, general secretary of the Communications Workers Union (CWU) told the BBC: I think it’s about testing Mr Křetínský as to whether he’s got any plans for investing in the workforces, investing in growth strategy for the company or whether his intentions are purely to asset strip the company.”
What about foreign ownership of Royal Mail? The UK’s chancellor told Business Matters: “I do think that for our economy to modernize, we need to attract investment from all over the world,” he said. “We have grown faster than other European economies because we’ve been more open to investment.”
Photo Credit: Royal Mail (Facebook)
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
