United Kingdom Sells Royal Mail to Foreign Owner for the First Time in 500 Years
The UK government has approved the sale of Royal Mail's parent company to Czech billionaire Daniel Kretinsky, who became the first foreign owner of Royal Mail in the company's 500-year history.
The £3.6 billion ($4.5 billion) takeover of Daniel Kretinsky's EP Group was approved after the ‘legally binding’ conditions were met. At the same time, the British government will retain the so-called ‘golden share’, which will require the new owner to approve any major changes in Royal Mail's ownership, headquarters and tax residence.
Under the terms of the deal, the new owner will retain Royal Mail's brand, headquarters and tax residence in the UK for the next five years.
Kretinsky told the BBC that he intends to develop Royal Mail's parcel delivery business, investing heavily in postal machines to make online delivery more efficient, as is the case across Europe.
EP Group will also need to maintain its commitment to universal service at a single price (USO), which currently means it must deliver letters six days a week, Monday to Saturday, and parcels Monday to Friday.
Royal Mail has been operating since 1516. In 2023, it was separated from the Post Office and privatised. In the last few years, it has been experiencing financial difficulties. In December, the company was fined £10.5 million for failing to meet its mail delivery targets.
Kretinsky's EP Group became IDS's largest shareholder two years ago, and in May this year, the billionaire announced his intention to become the company's full owner. Prior to the sale, the British authorities were investigating Kretinsky for ties to Russia because his companies were involved in transporting Russian gas to Central Europe.
