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Authorities confirmed Monday that the 3.6 billion-pound ($4.6
billion) takeover of Royal Mail's owner, International
Distribution Services, by billionaire Daniel Kretinsky's EP
Group, can go ahead.
Kretinsky and IDS agreed to the deal in May but had been waiting
for official approval under national security laws because of
the importance of the postal service in the U.K.
The service will remain headquartered in the U.K. and as part of
the deal, Britain's government will retain a so-called “golden
share” in the service, meaning it will need to approve any key
changes to Royal Mail's ownership, headquarters location and tax
residency.
Business Secretary Jonathan Reynolds said the move was a “good
deal for the U.K.”
“We have negotiated something which secures the long-term future
of Royal Mail and gives it the fresh start that we need," he
said.
Royal Mail, one of the U.K.'s oldest institutions, began in the
1500s as a service exclusively for the monarch and the royal
court. It became a public postal service in the 1600s.
The company, which was privatized in 2013, has struggled in
recent years to adapt as the number of people using the postal
service continues to decline steeply.
Kretinsky has business interests across Europe including
Eurstream, which moves Russian gas via pipelines through
Ukraine, the Czech Republic and Slovakia. He already owns a 27%
stake in IDS, and also has stakes in U.K. retail including in
leading supermarket chain Sainsbury's.
His firm previously said it viewed IDS as a strong business with
the potential to become a leading postal logistics group in
Europe.
The takeover deal, which still needs to be voted on by
shareholders, is expected to be completed early in 2025.
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