Royal Mail Takeover by Czech Billionaire Daniel Kretinsky Approved

December 16, 2024

By Evans Momodu
4 minute read

The UK government has approved the takeover of Royal Mail by Czech billionaire Daniel Kretinsky's EP Group, concluding a deal valued at £5.3 billion.

The move follows a review under national security laws, reflecting the vital role Royal Mail plays in UK infrastructure.

Key Details of the Deal:

Headquarters and Tax Residency: Royal Mail's HQ, tax base, and corporate structure will remain in the UK for at least five years, under a legally binding agreement.
Universal Service Obligation: The requirement to deliver mail to all UK addresses six days a week at a uniform price will continue indefinitely.
Government Oversight: A "golden share" retained by the government grants it authority over significant changes to Royal Mail operations.

Protections for Workers:

Dividends: Employees will receive 10% of any dividends paid out to Kretinsky under the deal.
Union Representation: A workers’ group will meet monthly with company directors, pending union approval.
Union Endorsement: Dave Ward, head of the Communications Workers Union (CWU), praised the agreement, calling it "groundbreaking" and a foundation for rebuilding Royal Mail.

The approval comes as Royal Mail seeks to implement significant reforms, including potential service cuts, to address ongoing financial and operational challenges.

The company has faced scrutiny for missing delivery targets and warnings about job losses and price increases.

About Daniel Kretinsky:

The 49-year-old Czech billionaire, ranked 33rd on The Sunday Times Rich List, owns a diverse portfolio of assets in energy, media, and retail, including stakes in Sainsbury's and West Ham United.

This acquisition strengthens his presence in the UK market while ensuring strategic commitments to Royal Mail's operations.

The Competition and Markets Authority (CMA) may still investigate the deal, but for now, the takeover marks a major shift in the ownership of one of Britain’s most iconic institutions.
Source: Sky news