Royal Mail’s sale to Czech billionaire Daniel Kretinsky has been cleared by the Government, paving the way for the more than 500-year-old postal service to pass into foreign ownership for the first time.
Business Secretary Jonathan Reynolds confirmed the Government had secured a raft of legally binding commitments with Mr Kretinsky’s EP Group over the postal service, including protecting the one-price-goes-anywhere delivery commitment and a pledge to keep Royal Mail headquartered in the UK.
Mr Kretinsky and International Distribution Services agreed to a deal worth £3.6 billion – or £5.3 billion including debt – in May but had been waiting for approval from the Government, which must sanction the takeover given the national importance of Royal Mail and the postal service in the UK.
Mr Kretinsky has since made several further concessions to gain approval, including giving the Government a “golden share” in the postal service, meaning it will need to approve any key changes to Royal Mail’s ownership, headquarters location and tax residency.
Mr Reynolds hailed the proposed takeover as being beneficial for the UK, Royal Mail workers and customers.
He said: “This would be a good deal for the UK, be a good deal for the people who work for Royal Mail, and, of course, would be a good deal for the customers.”
He added: “We have negotiated something which secures the long-term future of Royal Mail and gives it the fresh start that we need.
“If this takeover goes ahead, we’re going to be in a stronger position than we otherwise would have been.”
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