Royal Mail’s sale to Czech billionaire Daniel Kretinsky, owner of two Northern Ireland power stations, has been cleared by the Government, paving the way for the more than 500-year-old postal service to pass into foreign ownership for the first time.
Business Secretary Jonathan Reynolds confirmed the Government had secured a raft of legally-binding commitments with Mr Kretinsky’s EP Group over the postal service, including protecting the one-price-goes-anywhere delivery commitment and a pledge to keep Royal Mail headquartered in the UK.
Mr Kretinsky and International Distribution Services agreed a deal worth £3.6bn – or £5.3bn including debt – in May but had been waiting for approval from the Government, which must sanction the takeover given the national importance of Royal Mail and the postal service in the UK.
His company EP Power Europe has owned Northern Ireland power stations Ballylumford and Kilroot since buying them from AES in 2019.
Mr Kretinsky – nicknamed the Czech sphinx – has since made several further concessions to gain approval, including giving the Government a “golden share” in the postal service, meaning it will need to approve any key changes to Royal Mail’s ownership, headquarters location and tax residency.
Mr Reynolds said: “For too many years progress on securing a stable future at Royal Mail has stalled, but from day one we have been committed to providing a secure future for thousands of workers and customers.”
He added: “I’d like to thank EP Group and Daniel Kretinsky for their constructive approach to our discussions and their commitment to protecting this national icon.
“I look forward to working with them to fix the foundations and ensure Royal Mail continues to deliver for the communities and businesses who rely on it most.”