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STORY: The British government approved a multi-billion dollar takeover of the country’s iconic postal service Royal Mail on Monday (Dec 16).
EP Group – owned by Czech billionaire Daniel Kretinsky – has bid $4.5 billion for International Distribution Services – or IDS – which is Royal Mail’s parent.
IDS agreed to a takeover by EP Group in May, but the deal has been under review by Britain since August.
The government said it closely looked at it due to the national importance of the service.
Business Secretary Jonathan Reynolds said EP Group had committed to protect Royal Mail’s postal network.
He also said he had secured a so-called “golden share”.
That ensures its headquarters stay in Britain and the firm continues to pay UK taxes.
He further said the deal provided a secure future to thousands of workers and customers, and ensures a financially stable Royal Mail.
EP also announced it had reached agreements in principle with Royal Mail’s unions.
Kretinsky pledged to be a long term and committed investor.
He said EP Group was on a mission to make Royal Mail a successful modern postal operator.
Royal Mail was privatized in 2013 in a massive state selloff.
EP said it expects the deal to complete in the first quarter of next year.
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