A £3.6bn takeover deal by Czech billionaire Daniel Kretinsky’s EP Group has been approved by the UK government, allowing it to take control of Royal Mail’s parent company, International Distribution Services (IDS). The deal includes conditions that will ensure a “golden share” for the government, requiring approval on major changes to the company.
EP Group, which owns 27% of West Ham United football club and 10% of Sainsbury’s, has agreed to maintain Royal Mail’s one-price-goes-anywhere Universal Service Obligation (USO), ensuring six-day delivery Monday to Saturday for letters and five days a week for parcels. The company has also committed to preserving the USO “for as long as I am alive”.
The government will retain control over key areas, including tax residency and headquarters location, while EP Group will focus on modernizing Royal Mail’s services. Business Secretary Jonathan Reynolds described the deal as “good news” for the UK, its employees, and customers.
Czech billionaire Daniel Kretinsky has a net worth of £6bn and plans to expand Royal Mail’s parcels business, which is expected to be completed early next year. However, unions have expressed concerns about potential changes to the USO, citing the need for further discussions before reaching an agreement. The deal is seen as a significant development in the UK postal sector, with implications for delivery targets, postage costs, and customer service.
Source: https://www.bbc.com/news/articles/ckg93390808o