COMP-MERGER-REGISTRY@ec.europa.eu
ref M.11625 – EP Corporate Group EPCG / IDS (International Distribution Services Plc)
COCOO: the proposed concentration creates a risk to the uk wpi , as postal services ….is of wider public interest…
Royal Mail benefits from the unparalleled breadth of its U.K. postal network, which underpins its leading market share in the competitive parcel market. Additionally, its share in the structurally declining letter market exceeds 95%. Royal Mail’s key weaknesses include its below-average profitability, limited cost structure flexibility, and lower productivity than competitors, with workers paid per delivery. The productivity gap should reduce after the recent deal with the CWU. GLS benefits from its significant scale in the European parcel market, its cross-border offer, and its profitability and cost structure flexibility, which are better than those of most national postal operators.
S&P: The negative outlook reflects that we will likely downgrade IDS if the acquisition by EP UK Bidco Limited completes under the current terms and conditions.
OS
https://www.opensanctions.org/entities/NK-DB5VYvi7SaA2eFAm2iYQCs/ >> EPCG: RELATIONSHIPS: ASSETS; SHARES; ETC
OC:
https://opencorporates.com/companies/cz/08649197 = epcg
https://opencorporates.com/companies/gb/08680755 = IDS
https://find-and-update.company-information.service.gov.uk/company/08680755 = IDS
I ASK EC TO REVIEW SO THAT IT CAN POSSIBLY COMPLY WITH THEIR ONGOING DUTY TO:
-IDENTIFY WHAT NEEDS TO BE REPORTED TO THE EU.PARLM AS NEW LAWS
-THERE IS A RMS >> O2REVIEW >> IF NOT, EXPOST ADP REVIEW , DUE TO THE HIRING OF KEY STAFF.OWNERS TO ROYAL MAIL.IDS,
THERE IS potential for the new royal mail to select the publicity material and companies, which could be used to bias the ideological opinion of the general public, and also would constitute an illicit competitive advantage over competitors in the relevant industry.
cocoo:if cma.ec decis= NO RMS >> no o.2.review…but…..Case C-449/21 : Ecj: Towercast case: held that eu Matos that escaped ex-ante review (under mcr), can be subject to ex-post reviews (of completed matos) for ADP (at eu or at national level)…..But not if a mato is reviewed and cleared (under mcr)…ex: build-up of in the given ims. ex.-Less-traditional” matos, such as the hiring of key staff, can also be cma.reviewed.
THE GUADIAN.COM
-Křetínský is on the verge of clinching a deal that would represent a landmark triumph even for him: the £3.6bn takeover of Royal Mail’s parent company, International Distribution Services (IDS). The only thing that could stop the Czech businessman from acquiring Britain’s 508-year-old postal service would be an intervention from the UK government, which has been reviewing whether the deal poses a risk to national security interests. . if sosbt clears it, the COCOO will file a complaint against such decision.
–such a step would constitute a trigger event under the NSI Act [National Security and Investment Act] and that he is exercising his call-in power under section 1 of the NSI Act. national security concerns about a deal that would introduce foreign ownership to a UK Royal Institution like Royal Mail. As of today, the UK government has yet to intervene in the Royal Mail takeover and all the signs are that it will not…..cocoo will press sosbt and cma to piin.review and block the proposed deal, on these basis:
-Křetínský uses his media empire to spread his political ideas. Today’s corruption in the media ecosystem emerges from the abuse of dominant positions puppeted by a handful of billionaire owners. This results in disinformation that undermines the internal market and the very principles of our democracy.
-kretínský’s has dealings in Russia, as well as a series of regulatory wrangles and a takeover saga that would set a troubling precedent for Royal Mail.
https://www.epholding.cz/en/reports_and_presentations/ : 2020: a series of transactions that will lead to the following:
A newly established holding company EP Corporate Group, a.s. (EPCG) will gradually acquire direct and indirect interests of Daniel Křetínský and EPH top-management in the aforementioned strategic companies, i.e. EPH (energy), EPGC (wholesale and cash & carry), CMI (media), ECI (e-commerce), EPRE (real estate). EP Corporate Group has already been established and is headquartered in the Czech Republic. EPH and all other current and future EP Corporate Group members will continue to implement ring-fencing, being financially separated and independent. The current shares of EPH top-management in the group will be transformed in a 10.7% share in EPCG; the remaining 89,3% share associated with the management of the company will remain in the ownership of Daniel Křetínský. The EPCG board of directors will be identical to the current composition of the EPH board of directors
ec: This notification concerns the following undertakings:
— EP Group, a.s. (‘EPCG’, Czech Republic), controlled by Mr. Daniel Křetínsky, a national of the Czech Republic,
— International Distribution Services Plc (‘IDS’, United Kingdom).
EPCG will acquire within the meaning of Article 3(1)(b) of the Merger Regulation control of the whole of IDS.
The concentration is accomplished by way of public bid announced on 29 May 2024.
2. The business activities of the undertakings concerned are the following:
— EPCG is an investment holding company controlled by Mr. Křetínský. Mr. Křetínský holds interests in companies active
across Europe in sectors such as energy, infrastructure, food, logistics, media, and e-commerce,
— IDS is the holding company of the Royal Mail Group providing postal and delivery services in the United Kingdom and
of General Logistics Systems B.V., an international provider of small package delivery services.
3. On preliminary examination, the Commission finds that the notified transaction could fall within the scope of the
Merger Regulation. However, the final decision on this point is reserved.