The UK government has green-lit the £3.6 billion sale of Royal Mail’s parent company, International Distribution Services (IDS), to Czech billionaire Daniel Křetínský’s EP Group.
This marks the end of over 500 years of British ownership of the historic postal service, but the deal comes with conditions to protect its legacy.
The sale was announced on Monday and includes a “golden share” for the government, ensuring control over key decisions like ownership changes, tax residency, and the company’s headquarters. Royal Mail will operate under strict terms, such as maintaining its Universal Service Obligation (USO), which guarantees regular delivery services across the UK.
The agreement also mandates that Royal Mail’s headquarters and tax residency remain in the UK for at least five years. Moreover, Křetínský has committed to sharing 10% of the company’s dividends with employees and establishing a worker’s council to amplify their voices in decision-making.
Křetínský, who has owned a 27.5% stake in IDS since 2022, expressed his long-term vision for modernizing Royal Mail while respecting its historic role. He stressed, “EP Group is a long-term and committed investor with a mission to make Royal Mail a successful modern postal operator with high-quality service and products for its customers.”
The deal was scrutinized under national security laws due to Royal Mail’s importance as critical infrastructure, particularly because of Křetínský’s ties to gas transmission services still involved in transporting reduced volumes of Russian gas to Europe.
In addition to his new stake in Royal Mail, Křetínský’s UK investments include a 27% share in West Ham United Football Club and 10% of Sainsbury’s.
