The sale of Royal Mail to Czech billionaire Daniel Kretinsky is to be approved by the government after details of an agreement have been published.
Mr Kretinsky‘s company EP Group will buy the postal service’s parent company International Distribution Services (IDS).
The £5.3bn deal had been agreed in May but was subject to a government review under national security laws as Royal Mail is considered vital national infrastructure. It’s possible competition regulator the Competition and Markets Authority (CMA) could decide to investigate the takeover.
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Royal Mail’s headquarters, tax base, and corporate structure will remain British for five years under the agreement reached with the government. The universal service obligation to deliver letters to every address in the UK, six days a week, at a uniform price will also remain indefinitely.
The government will retain a “golden share” requiring it to approve major changes.
Under the deal, employees will receive a 10% share of any dividends paid out to Mr Kretinsky. A workers’ group will be formed and meet monthly with company directors.
This measure requires union approval and ratification and so will not be announced on Monday.
It comes after the Royal Mail put forward proposed shake-up plans to Ofcom as part of turnaround efforts, including cutting down on some deliveries.
Who is Daniel Kretinsky?
The 49-year-old Mr Kretinsky is ranked 33rd on The Sunday Times Rich List with an estimated net worth of £6bn – up £2bn since 2023.
In 2021 he bought a 27% stake in West Ham United – a deal worth £150m. His EP Group already owned 27.6% of Royal Mail holding company IDS.
He’s a nearly 10% shareholder in Sainsbury’s.