Czech billionaire’s £3.6bn takeover of Royal Mail ‘approved’ reports say

The sale of Royal Mail’s parent company to a Czech billionaire has been approved by the Government, according to a report.

The £3.6bn takeover by Daniel Kretinsky’s EP Group from current owner International Distribution Services (IDS) will be announced on Monday, the BBC reported.

Mr Kretinsky is believed to have made several concessions to gain approval, including allowing workers to get a 10% share of any dividends paid out to him.

The Government will reportedly keep a so-called “golden share” that will mean it needs to approve any key changes to Royal Mail’s ownership, headquarter location and tax residency.

He had already guaranteed not to raid the pensions surplus, to maintain the universal service and to keep the brand name and Royal Mail’s headquarters and tax residency in the UK for the next five years.

According to the FT, EP Group had been locked in late negotiations with officials and the postal workers’ union as they sought further assurances about the deal.

Mr Kretinsky is 49-year-old entrepreneur and lawyer with a net worth of £6bn, according to the Sunday Times Rich List.

When the takeover offer was first accepted by Royal Mail’s owner in May, IDS said it would see the company continue its universal service obligation to one-price-goes-anywhere first class post six days a week, and keep its branding and UK headquarters.

At the time, Mr Kretinsky said the EP Group has “the utmost respect for Royal Mail’s history and tradition”, but that IDS must “accelerate its transformation and investments into modernisation to keep up with the competition”.

The reported approval comes just days after regulator Ofcom fined Royal Mail £10.5m for missing its post delivery targets in the 2023-2024 financial year.

The fine was the second in two years, after the watchdog fined the company £5.6m in November 2023.