The sale of the centuries-old Royal Mail’s parent company to a Czech billionaire has been approved by the UK government after a review under national security laws.
The 3.6 billion pound takeover of International Distribution Services (IDS), the owner of Royal Mail, by Czech billionaire Daniel Křetínský’s EP Group was confirmed Monday (16 December, 2024) after securing commitments that the government would protect the 508-year-old postal service.
The government will retain a so-called “golden share” in IDS that will require its assent of any major changes to Royal Mail’s ownership, headquarter location, or tax residency.
Additionally, Křetínský has already offered other guarantees in a bid to secure the deal. Maintaining the one price-goes-anywhere Universal Service Obligation (USO) – which currently means it has to deliver letters six days per week, Monday to Saturday, and parcels five days Monday to Friday per week – is one of them. Not raiding the pension surplus and respecting union demands for no compulsory redundancies to take place until 2025 are also part of the offer.
The takeover is expected to be completed early in 2025.
Křetínský was born in the city of Brno in the Czech Republic. The 49-year-old businessman and lawyer has assets worth 6 billion pounds according to Sunday Times Rich List, but adopts a low-profile approach to his various business dealings in energy, investment, retail, and sport.
Royal Mail is an established brand with more than 500 years of history. Beginning as a postal service exclusively for the King and his Court, today it operates throughout the UK and offers letter and parcel delivery services internationally.
