Report: CVC Eyes Royal Mail

UK buyout firm CVC is planning on buying a sizeable minority stake through the part-privatization of the Royal Mail, it has emerged.

The Wall Street Journal is reporting that the British government wants to sell at least 25% of Royal Mail Group while keeping control of the Post Office branches themselves.

In April this year, Sweden‘s Posten and Post Danmark, which has CVC Capital Partners as a major shareholder, agreed to a US$7.5bn merger.

CVC had acquired its 22% stake in Post Danmark from the Danish state back in 2005.

When the merger completes, CVC is expected to own 8% of the new Nordic postal group.

CVC and Post Danmark also control 50% of Belgium’s De Post-La Poste.

Dutch postal giant TNT has already confirmed its interest in Royal Mail, and Germany’s DHL is expected to do so soon.

CVC was not commenting on the situation.

Source: Thomson Merger News