Royal Mail takeover by Czech billionaire Daniel Křetínský approved
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UK government to retain ‘golden share’ in parent company of International Distribution Services. The sale of Royal Mail’s parent company to the Czech billionaire Daniel Křetínský has been approved by the UK government after a review under national security laws.
A £3.6bn takeover of International Distribution Services (IDS) – the owner of the 508-year-old Royal Mail – by Křetínský’s EP Group was confirmed on Monday morning. The government will retain a “golden share” in IDS that will mean any changes to Royal Mail’s ownership, tax residency or headquarters will need its assent.
The board of IDS agreed to the takeover in May, after rejecting initial approaches at a lower price. EP Group has agreed to a make a series of undertakings to persuade the government to let the deal through. They include retaining the universal service obligation for a first-class postal service to anywhere in the country for a fixed price six days a week for at least five years. IDS has suggested second-class post could be reduced to every other weekday.
Other undertakings include keeping the Royal Mail headquarters and tax residency in the UK for five years, and maintaining base salaries and benefits for staff for at least two years. In a statement, EP said on Monday: “Having worked closely with the secretary of state for the department for business and trade, Bidco and EP are pleased to announce that they have entered into legally binding undertakings, conditional upon completion of the acquisition.”.
