Czech billionaire Daniel Kretinsky continues to expand his influence across European industries, but harbors concerns about the continent’s economic direction. His recent acquisitions, coupled with existing holdings, position him as a significant player in sectors ranging from retail and energy to postal services, yet he believes a lack of pragmatism threatens Europe’s growth potential.
Kretinsky’s most recent move, launched on , is a takeover offer for Fnac Darty, the French electronics retailer. This follows a busy , which saw him take Germany’s Metro, a major wholesaler, private in . In , he acquired International Distribution Services (IDS), the parent company of Royal Mail, signaling a substantial investment in the British market. Further diversifying his portfolio, Kretinsky became a significant shareholder in TotalEnergies, the French oil company, in .
The acquisition of Royal Mail, in particular, has drawn scrutiny. The UK government has initiated a review of Kretinsky’s £3.57 billion bid for the remaining shares of IDS, a move driven partly by political expediency and a desire to demonstrate thorough oversight. Despite EP Group, Kretinsky’s investment vehicle, already being the largest shareholder in IDS and wielding considerable influence over Royal Mail, the government felt compelled to act. This decision follows a previous review in when Kretinsky increased his stake from 25 percent to 27.5 percent, which resulted in clearance.
The current review is partly justified by the unique importance of Royal Mail within the UK’s infrastructure. The government’s action also reflects a broader trend of increased scrutiny towards foreign ownership of key national assets, particularly when linked to entities with connections to countries considered less aligned with UK interests. This contrasts with past sales of national assets, such as the National Lottery, to foreign owners with similar backgrounds to Kretinsky, which did not receive the same level of inspection.
A key concern surrounding Kretinsky’s bid centers on his ownership stake in EUStream, a Slovakian pipeline that transports Russian gas to Western Europe, and Ukraine. While Kretinsky maintains that his role is limited to transmission operations – that he does not purchase gas directly from Russia or engage in related dealings – the connection has prompted ministerial scrutiny. This is particularly sensitive given the ongoing geopolitical context and historical tensions between the UK and Russia.
Despite these concerns, Kretinsky remains a committed investor in Europe. He expresses a belief in the continent’s potential, but cautions against what he perceives as a prevailing lack of pragmatism. He emphasizes the need for practical solutions to economic challenges, rather than idealistic pursuits. This sentiment was echoed in comments reported earlier this month, where he voiced concerns about the continent’s ability to adapt and compete in a rapidly changing global landscape.
Kretinsky’s rise to prominence has been swift. His strategic acquisitions demonstrate a clear understanding of market opportunities and a willingness to invest in established European businesses. The report highlights the unprecedented level of activity he undertook in , solidifying his position as a key figure in European finance. His approach appears to focus on identifying undervalued assets with strong fundamentals and implementing strategies to unlock their potential.
The Economist reported on that Kretinsky “still believes in the old continent—but fears its lack of pragmatism.” This assessment suggests a nuanced perspective, acknowledging Europe’s strengths while simultaneously identifying critical weaknesses that could hinder its future growth. His investments, while substantial, are accompanied by a call for a more realistic and adaptable approach to economic policy.
The government’s review of the Royal Mail takeover bid is expected to take time, and the outcome remains uncertain. However, the case underscores the increasing complexity of cross-border investments and the growing importance of national security considerations in evaluating such transactions. Kretinsky’s position as a major European business figure will undoubtedly continue to evolve, and his views on the continent’s economic future will be closely watched by investors and policymakers alike.
