DMA welcomes Royal Mail privatisation plans

The Direct Marketing Association (DMA) has welcomed confirmation that the Royal Mail will be privatised, arguing the move will help to create increased competition in the sector.

Royal Mail: DMA welcomes privatisation
Royal Mail: DMA welcomes privatisation

The government announced this morning (12 September) that it will proceed with an initial public offering (IPO) and is offering shares to institutional investors and members of the public.

Chris Combemale, executive director of the DMA, said: "We cautiously welcome the government’s plans to privatise Royal Mail. Privatising Royal Mail should lead to increased competition and long-term investment in infrastructure, which should lead to lower costs for online retailers using the service to deliver goods to consumers.

"Businesses that use direct and transactional mail to communicate with their customers should also benefit from improved services and competitive prices."

The industry body claims it will work closely with the Royal Mail to ensure the privatisation will be beneficial for its direct marketing membership.

It is expected the IPO will happen in November, with employees being given 10% of the shares and the remainder being offered out to prospective shareholders.

The Communication Workers Union is objecting to the flotation of the Royal Mail and is running a ballot of its members for strike action with an outcome expected on 3 October. 

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Sainsbury's moves £60m ad account to Wieden & Kennedy
Share

1 Sainsbury's moves £60m ad account to Wieden & Kennedy

Sainsbury's has moved its £60m advertising account into Wieden & Kennedy, ending its 35-year-relationship with Abbott Mead Vickers BBDO.

The top 10 brands favoured by Remainers and Brexiters
Shares0
Share

1 The top 10 brands favoured by Remainers and Brexiters

Marketers can learn about our divided nation by examining the brands that appeal across the voting referendum voting split, says Emily James, chief strategy officer at Rainey Kelly Campbell Roalfe/Y&R.

Just published