Britain on Monday cleared Czech billionaire Daniel Kretinsky's EP Group to buy Royal Mail in a 3.57 billion pound deal, after securing commitments that the government said would protect one of the world's oldest postal services.
EP Group agreed to acquire Royal Mail parent International Distribution Services (IDS) in May, but the British government said in August it would scrutinise the deal due to the national importance of the service.
Business secretary Jonathan Reynolds said EP Group had committed to protect Royal Mail's postal network, and he had secured a "golden share" that would ensure its headquarters remained in Britain and it would continue to pay UK taxes.
He said the deal provided a secure future to thousands of workers and customers, and would ensure a financially stable Royal Mail.
EP also said on Monday it had reached agreements in principle with Royal Mail's unions.
Other commitments include keeping the brand and Royal Mail's Crown cypher, which reflects a history that dates back to the sixteenth century.
Reynolds said it was a good deal for Britain, for the people who work for Royal Mail and for customers.
"It actually increases what was in place following the privatisation of Royal Mail, with a golden share for the UK government," he told broadcasters.
Kretinsky, a former investment bank lawyer who built one of Europe's largest energy groups, Energeticky a Prumyslovy Holding (EPH), has been diversifying into retail, media and other areas.
He said EP Group was a long term and committed investor with a mission to make Royal Mail a successful modern postal operator.
"We look forward to delivering on this mission alongside our partners in government," he said in a statement.
Royal Mail was privatised in 2013 in a massive state selloff at an initial public offering price of 330 pence a share.
Kretinsky was already the biggest shareholder in IDS, the owner of both Royal Mail and international parcels network GLS.
The takeover, agreed in May, valued shares in IDS at 370 pence each. The deal included a commitment to a 'one-price goes anywhere' postal service six days a week, which was cemented in Monday's agreement.
The deal is subject to some remaining shareholder and regulatory approvals. It is expected to complete in the first quarter of 2025, EP said.
(Reuters)
