Historic Sale: Royal Mail Passes Into Czech Ownership

The UK government has approved the sale of Royal Mail's parent company, International Distribution Services, to Czech billionaire Daniel Kretinsky's EP Group. The £3.6 billion deal ensures continued UK headquarters and a 'golden share' retained by the government for key decisions affecting Royal Mail.

The British government has sanctioned a historic transaction, allowing the sale of Royal Mail's parent company, International Distribution Services, to Czech billionaire Daniel Kretinsky. This deal marks the first time in its 500-year history that the postal service will slip into foreign hands.

Approved under national security measures, the £3.6 billion acquisition by Kretinsky's EP Group was first agreed upon in May. The deal will maintain Royal Mail's headquarters in the UK, with a governmental 'golden share' in place to oversee fundamental changes in ownership and tax residency.

Business Secretary Jonathan Reynolds deems it a wise decision, suggesting it secures Royal Mail's long-term future. Scheduled for completion by early 2025, the transaction underpins Kretinsky's increasing influence in UK's market after acquiring stakes in key sectors, including retail.

(With inputs from agencies.)