Bank of Ireland joint venture unlikely to be affected by Royal Mail flotation

Bank of Ireland’s well-performing financial services joint venture with the British post office is unlikely to be affected by any partial sale or flotation of the Royal Mail next year.

According to the Financial Times, the British government is set to begin the privatisation of the Royal Mail towards the end of 2013. Although still too early to judge, this could either see the service partially sold or floated on the London Stock Exchange. It is thought that Britain’s coalition government prefers the flotation option, but hasn’t ruled out the prospect of seeking a sale to an industry buyer or a private equity buyer.

Much depends on an improvement in the climate for initial public offerings plus whether or not the Royal Mail’s own finances continue to gain strength.