Royal Mail, OK for the sale of Her Majesty's Mail
The group passes for £3.6 billion to EP Group controlled by Czech billionaire Daniel Křetínský
2' min read
2' min read
The British government has approved the sale of Royal Mail for £3.6 billion to the EP Group controlled by Czech billionaire Daniel Křetínský. The 'Royal Mail', founded over 500 years ago in the time of Henry VIII and long public, now passes into foreign hands for the first time.
The golden share
.After months of deliberation over the importance of Royal Mail to national security, London has given the green light to the takeover on condition that it retains a 'golden share' that grants the government the right to oversee the governance and accountability of the postal service and the ability to prevent the Post Office's headquarters or registered office from being relocated abroad. The agreement also provides for the Royal Mail name to remain unchanged.
The talks with Ids were 'constructive' and the decision to approve the sale demonstrates the government's 'commitment to close cooperation with the private sector', said Business Minister Jonathan Reynolds.
The unions' green light
.Even the trade unions, long opposed to the sale to Křetínský, gave their blessing to the deal after receiving guarantees on the protection of wages and jobs: 11 thousand part-time employees will have the possibility of full-time employment and 20 thousand employees will get a better contract. In addition, part of the profits will be deposited in a collective fund for the benefit of the employees.
An agreement in principle on the sale of International Distribution Services (Ids) for £3.6 billion (£5.3 billion including debt) had been reached in May by the group's board, but without government or union approval. Now that this last hurdle has been removed, the acquisition is expected to be completed in early 2025.
