The sale of the parent company of Royal Mail to a Czech billionaire Daniel Kretinsky It was approved by the UK government after a review under national security laws.
£3.6bn takeover of International Distribution Services (IDS) – 508 year old owner Royal Mail – Křetínský’s EP Group was confirmed on Monday morning.
It will be the first time in its history that Royal Mail has been controlled by an overseas owner. tends to 1635 when Charles I first introduced the public couriers.
The government will retain the “golden part” in the IDS, which means that any changes to the royal property, tax residence or headquarters, will need approval. The Royal Mail brand will also be protected as long as the company owns the EP.
Table IDS agreed to the rate in Mayinitially rejected at a lower price.
EP Group agreed to a series of initiatives to convince the deal to be approved. They include maintaining a universal service commitment for first-class mail anywhere in the country for a fixed price six days a week while Křetínský is in power – a stronger commitment than the five-year-old pledge.
The government has also blocked Royal Mail from paying dividends or similar payments to its owners unless the company meets financial targets and improves its postal performance. The sale of the dividend and the asset will also be blocked if they put the general office at risk. IDS suggested the second-generation post it could be reduced to all other holidays.
Keith Williams, non-executive chairman of IDS, said the approval was a “big milestone” but for the “island reform of the universal service and the continued transformation of such a British business”.
Dame Melanie Dawes, chief executive of Ofcom, told BBC Breakfast on Monday that the company had “a lot of changes that we need to make” because of the decline in letter volumes.
“Next year we’ll be working with targets to make sure that’s sustainable, and we’ll be absolutely accountable to the Royal Government in delivering – whatever that final outcome is,” he said.
Other initiatives include keeping Royal Mail headquarters and tax residency in the UK for five years, and supporting basic salaries and benefits for staff for at least two years.
The EP said on Monday “the projects are legally binding, conditional on the completion of the acquisition”.
The takeover was called for in a review in August on public security grounds, as Royal Mail still shares a role in the country’s communications infrastructure, albeit at a reduced rate. The UK owns gold companies in companies that are seen as its security, including arms manufacturers BAE Systems and Rolls-Royce.
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The approval of the deal can be seen as a triumph for the businessman, who – despite his reputation as a low-profile “Bohemian Monkey” – has shown a clear interest in snapping up British assets. Close to EP’s main business is running coal, gas and power generation operations, Křetínský owns 27% of West Ham football club United and 10% of the Sainsbury’s supermarket chain.
The deal, which is expected to be completed in the first half of 2025, will probably prompt scrutiny of Křetínský’s business dealings, especially in Russia. EP Group holds a stake in the Slovakian gas pipeline that continues to pump Russian gas into Europe. The guard was reported Krétínský held talks with Alexey Millerthe capital of Russia’s state-owned gas company, Gazprom, and an associate of Vladimir Putin.
EP Group is also owned by Patrik Tkáč. In the month of June, The guard is revealed Tkáč’s J&T Banka is involved in a court case over $6m (£4.7m) loaned to former Turks and Caicos Islander Michael Misick, who is facing corruption charges. J&T Guard at the time denied wrongdoing.
EP Group said on Monday it had reached a deal with the Communications Workers Union (CWU) over the conditions of workers and managers at Royal Mail.
Dave Ward, general secretary of the CWU, said the union wanted public ownership, but “the status quo is what will kill postmen in the UK”. He accused Royal Mail’s management of “running the company into the ground for an unacceptable period of time”.
“This agreement provides the basis for rebuilding Royal Mail,” he said. “These negotiations have been challenging, but with the support of our members we have managed to deliver a foundational agreement that puts postal workers and customers back at the heart of everything we do at Royal Mail.”
Last week, it was Royal Mail is fined more than £10m from Ofcom for missing its delivery targets.