The sale of Royal Mail to Czech billionaire Daniel Kretinsky has been officially approved, following a national security review.
Kretinsky’s EP Group will acquire International Distribution Services (IDS), the parent company of the UK postal giant, in a £5.3 billion deal.
Safeguards for National Infrastructure
Royal Mail, considered a vital piece of national infrastructure, will retain its British headquarters, tax base, and corporate structure for at least five years under the terms of the agreement.
The universal service obligation—requiring six-day-a-week delivery of letters to every UK address at a uniform price—will also remain in place.
The UK government will retain a “golden share,” ensuring it has the power to veto any major structural changes to the postal service.
Employee Benefits and Union Engagement
As part of the agreement, Royal Mail employees will be entitled to 10% of any dividends distributed to Kretinsky.
Additionally, a workers’ group will be established to meet monthly with company directors. However, this initiative requires union approval and ratification before implementation and will not be announced immediately.
Strategic Changes and Turnaround Plans
The deal coincides with Royal Mail’s ongoing efforts to streamline operations, including proposed delivery service changes currently under review by Ofcom. These plans aim to support a broader turnaround strategy for the company.
Billionaire’s Expanding Portfolio
Daniel Kretinsky, aged 49, ranks 33rd on The Sunday Times Rich List with a net worth of £6 billion, up £2 billion since 2023.
His business empire extends across various sectors, including his 2021 purchase of a 27% stake in West Ham United for £150 million.
Kretinsky’s EP Group already owned 27.6% of IDS before this acquisition, solidifying his position as a key player in Royal Mail’s future.
