Britain’s government has approved the £3.6 billion ($4.6 billion) sale of Royal Mail’s parent company, International Distribution Services (IDS), to Czech billionaire Daniel Kretinsky’s EP Group. This marks the first time in 500 years that the postal service will be under foreign ownership.
Kretinsky and IDS reached the agreement in May, but it was pending approval under national security laws due to the importance of Royal Mail to the U.K. Despite the sale, Royal Mail will remain headquartered in the U.K. and the government will retain a “golden share,” which allows it to approve significant changes to the company’s ownership, headquarters, and tax status.
Business Secretary Jonathan Reynolds described the deal as a “good deal for the U.K.,” ensuring Royal Mail’s future and providing it with a fresh start. Founded in the 1500s as a service for the monarch, Royal Mail became a public service in the 1600s but has struggled in recent years due to declining mail usage.
Kretinsky, who owns stakes in U.K. retail, including Sainsbury’s, is known for his investments across Europe, including Eurstream, which transports Russian gas. The takeover deal, which still requires shareholder approval, is expected to conclude in early 2025.
