Royal Mail's historic sale to Czech billionaire approved
The authorities in Great Britain have approved the purchase of the British postal service, Royal Mail, by Czech billionaire Daniel Křetínský, who was previously, among other ventures, the owner of the French newspaper "Le Monde", as reported by Reuters. Under the agreement, the government will retain the so-called 'golden share' in Royal Mail.
EP Group, owned by Křetínský, received approval to purchase Royal Mail for $4.5 billion after the British government concluded that the Czech company met all necessary requirements to protect the world's oldest postal service, which is 508 years old. The government will still need to consent to key changes within Royal Mail, as ensured by the golden share.
The details of the acquisition of Royal Mail's owner, International Distribution Services (IDS), by EP Group were settled back in May this year. However, due to national security concerns, the government had to give final approval for this transaction.
EP Group also reached an agreement with the British postal service unions. Government representative Jonathan Reynolds assured that the new owner of Royal Mail would guarantee its financial stability and a promising future, as well as preserve jobs.
The transaction is expected to be finalised in the first quarter of 2025. When this occurs, it will be the first time Royal Mail has passed into foreign hands. The history of the British postal service dates back to the early 16th century and the reign of King Henry VIII.
Royal Mail in private hands. What will not change?
Under the agreement, EP Group committed, among other assurances, to guaranteeing postal services at a fixed price, available six days a week. Royal Mail cannot distribute dividends or similar payments to its new owner until it achieves financial goals and enhances postal services.
The headquarters and tax residence of Royal Mail must remain in the British Isles, and salaries and bonuses for employees will stay at the current level for at least the next two years.
