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Royal Mail agrees to £3.57bn takeover by Czech billionaire Daniel Křetínský; Ofwat ‘to cut fines’ for stressed UK water companies
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Royal Mail agrees to £3.57bn takeover by Czech billionaire Daniel Křetínský; Ofwat ‘to cut fines’ for stressed UK water companies
Rolling coverage of the latest economic and financial news, as Royal Mail’s parent company IDS agrees takeover offer
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Today's agenda
The Czech billionaire Daniel Křetínský has announced that 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 a share.

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

Keith Williams, the chair of IDS, said the offer is "fair and reasonable” given the uncertainties ahead.

Williams said 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.

Williams said: "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 will still need approval from shareholders and the government.

Britain’s struggling water companies are about to get a hand-up from regulators, according to reports this morning.

The water regulator for England and Wales, Ofwat, is drawing up plans for a special “recovery regime” for Thames Water and other financially stressed water companies, the Financial Times reports.

Under this regime, the water companies could receive fewer or no regulatory penalties to encourage them to invest in infrastructure improvements instead.

They would also be given more “realistic” targets for reducing sewage and water leaks and outages – despite some companies having spectacularly failed to hit targets in the past.

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Pippa Crerar

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Pippa Crerar

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