UK Government Approves £3.6 Billion Takeover of Royal Mail's Parent Company by Czech Billionaire Daniel Kretinsky

Dec 16, 2024, 09:23 AM

The UK government has approved the £3.6 billion takeover of Royal Mail's parent company, International Distribution Services, by Czech billionaire Daniel Kretinsky's EP Group. This decision marks the first time in over 500 years that the historic postal service will pass into foreign ownership. The approval comes with legally binding commitments from Kretinsky, including assurances to maintain the Royal Mail brand, headquarters, and tax residency in the UK for five years. The government retains a 'golden share' that allows it to veto significant changes to the company. Business Secretary Jonathan Reynolds stated that the deal is intended to secure the long-term future of Royal Mail and improve its services. Kretinsky has also promised not to take dividends for five years unless delivery performance meets specific benchmarks. The announcement is expected to be formally made on Monday, December 16, 2024.