Sale of Royal Mail to Czech billionaire to be announced this morning
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The sale of Royal Mail to Czech billionaire Daniel Kretinsky will be approved this morning, Sky News understands. Mr Kretinsky's company EP Group will buy the postal service's parent company International Distribution Services (IDS). The £5.3bn takeover deal had been agreed in May but was subject to a review under national security laws as Royal Mail is considered vital national infrastructure.
Royal Mail's headquarters, tax base, and corporate structure will remain British for five years. The universal service obligation to deliver letters to every address in the UK, six days a week, at a uniform price will also remain. The government will retain a "golden share" requiring it to approve major changes.
Royal Mail will also ensure workers receive a 10% share of any dividends paid out to Mr Kretinsky and the formation of a workers group, which will meet monthly with company directors. This measure requires union approval and ratification and so will not be announced on Monday.
Royal Mail fined £10.5m after missing delivery targets. Budget fallout: Royal Mail owner warns on prices and jobs. Royal Mail deliveries to Clyde Tower in East Kilbride suspended after postal workers 'threatened with dog'. 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.
