UK Government announcements, Royal Mail service updates

Royal Mail's £3.6 Billion Sale to Czech Billionaire Approved, Marking First Foreign Ownership in 500 Years

Dec 16, 2024, 10:37 AM

The UK government has approved the £3.6 billion takeover of Royal Mail's parent company, International Distribution Services (IDS), by Czech billionaire Daniel Kretinsky's EP Group. This marks the first time in Royal Mail's over 500-year history that it will pass into foreign ownership. The government secured legally-binding commitments from EP Group, including the maintenance of Royal Mail's headquarters, brand name, and tax residency in the UK for at least five years. Additionally, the government will retain a 'golden share' that grants it veto power over major changes to the postal service. Business Secretary Jonathan Reynolds confirmed the approval, stating that the deal ensures the long-term future of Royal Mail and gives it a fresh start. Kretinsky has pledged not to raid Royal Mail's pension surplus and to uphold the universal service obligation. The takeover was reviewed under the National Security and Investment Act to address potential security concerns.