European and American regulators clear £3.6bn sale of Royal Mail owner IDS

[TrueBlueTerrier]

https://www.thisismoney.co.uk/money/mar ... r-IDS.html

The sale of Royal Mail cleared another hurdle last night after European and American regulators approved a £3.6billion takeover.

International Distribution Services (IDS), which owns the postal service, said the deal has been cleared by the European Commission and the US Committee on Foreign Investment.

UK regulators have already given the controversial takeover of the 500-year-old postal service the green light on national security grounds.

And ministers and the unions have also backed the bid by Czech billionaire Daniel Kretinsky after securing beefed up commitments, including giving the Government a so-called golden share in the company.

It sent shockwaves through the City and Westminster when the IDS board accepted the energy tycoon’s offer in May last year.

The deal will see Royal Mail fall into overseas ownership for the first time since the postal service was established by Henry VIII in 1516.

The offer still needs to clear foreign direct investment regulations in Denmark, Austria, Germany and Romania, and EU subsidy rules.

Meanwhile, the postal service is also seeking a major shake-up of its services, which would allow it to ditch Saturday deliveries for second class letters.

Royal Mail must deliver letters six days a week to all 32m addresses in the UK for the price of a stamp.

But the firm has argued its obligations have become unsustainable as the number of letters being sent has tumbled.

[posted]

we're going to start to need a tick list now of what's been approved and what's pending.

We've had parliament, UK security and now European Commission and US Security.

So what other approvals are required (other than 75% shareholder)?

[Trumanity]

it's a done deal. It's just the timing of the transaction to complete now.

[posted]

it's a done deal. It's just the timing of the transaction to complete now.

Are you saying that because you know that or just speaking figuratively?
I’m just surprised nothing has come out from IDS, if this indeed was the last hurdle pre-75%.

[posted]

The announcements on 16 December 2024 are separate from the antitrust and regulatory clearances required for the Offer timetable to resume, certain of which remain outstanding. An announcement will be made in due course once the Offer timetable resumes confirming the relevant deadlines. Shareholders should continue to check the IDS website for updates.

Important: please note that on 2 August 2024 a further announcement has been made by the Company to advise that the Offer Timetable has been suspended to allow the regulatory and antitrust approvals to be obtained. The Offer Timetable will resume on the date on which the last regulatory and antitrust condition is satisfied or, where applicable, waived.

And this from 14th January Regulatory Update.

Other Regulatory Conditions

Of the other required antitrust and regulatory approvals, non-objections or expiry of applicable waiting periods set out in paragraphs 2(a) to 2(j) (inclusive) of Part A of Part 3 (Conditions to and further terms of the Acquisition) of the Offer Document (the "Regulatory Conditions"), the last remaining condition set out in paragraph 2(g) (Foreign Direct Investment) and the condition set out in paragraph 2(j) (EU Foreign Subsidies Regulation) remain outstanding. Further to the announcement made on 16 December 2024 regarding the undertakings agreed between Bidco, EP and the UK Government, and the announcement made on 20 December 2024 regarding the satisfaction of the NSIA Condition, each of the other Regulatory Conditions have now been satisfied. EP and Bidco will continue to engage with the relevant authorities in relation to the outstanding Regulatory Conditions and will provide an update once all of the Regulatory Conditions have been satisfied or waived, as applicable. Subject to the satisfaction or waiver (as applicable) of the Conditions (including, the Regulatory Conditions), it is currently expected that the Offer will become or will be declared Unconditional in the first quarter of 2025.

[robking]

it's a done deal. It's just the timing of the transaction to complete now.

Are you saying that because you know that or just speaking figuratively?
I’m just surprised nothing has come out from IDS, if this indeed was the last hurdle pre-75%.

Given that the share price is still just below the offer price I'd be astonished if they haven't got more than 75% acceptances already, they've probably got more like 95% by now.
The UK government approval was the only serious hurdle, the rest is just paperwork.

[Edward Hunter]

After the takeover when will they pay the cash for my shares?

[robking]

After the takeover when will they pay the cash for my shares?

It says here around 14 days after the offer becomes unconditional.

https://idsoffer.shareview.info/