Britain’s historic Royal Mail is set to transition to foreign ownership following the UK government’s approval of a £3.6 billion ($4.5 billion) takeover of its parent company, International Distribution Services (IDS), by Czech billionaire Daniel Kretinsky’s EP Group on Monday.
The government highlighted that the deal “protects workers and key services” while ensuring that Royal Mail remains headquartered in the UK, securing local jobs and tax revenues. As part of the agreement, the government will retain a “golden share,” granting it veto power over relocating Royal Mail’s headquarters abroad or altering its tax residency.
Since May, both parties have awaited the government’s approval after IDS accepted the EP Group’s offer. Kretinsky, who already held a nearly 28% stake in the company, provided several guarantees to secure the deal, including upholding the Universal Service Obligation (USO) to deliver mail six days a week to all 32 million UK addresses for the price of a stamp.
Business Secretary Jonathan Reynolds stressed the importance of stabilising Royal Mail after years of challenges. “We are working towards ensuring a financially stable Royal Mail with protected links between communities other providers can’t reach,” he stated.
Kretinsky described EP Group as a “long-term and committed investor,” aiming to modernise Royal Mail and enhance its services and products.
Royal Mail, privatised in 2013, has faced significant struggles, including declining parcel volumes, mail delivery delays, and industrial action over pay. Just last week, Britain’s communications regulator Ofcom fined the postal operator £10.5 million for failing to meet delivery targets.
IDS employs around 153,000 staff, most of whom work for Royal Mail, alongside its international parcels business, GLS.
