Czech billionaire's takeover of Royal Mail approved by UK government

LONDON, U.K. The U.K. government has approved the US$4.6-billion sale of Royal Mail's parent company, International Distribution Services (IDS), to Czech billionaire Daniel Kretinsky's EP Group, marking the first time in its 500-year history that the iconic postal service will come under foreign ownership.

The deal was first agreed upon in May and received the green light on December 16 after a review under national security laws due to Royal Mail's critical role in the U.K.

Under the agreement, Royal Mail will remain headquartered in the U.K., and the British government will retain a "golden share," giving it the power to veto any significant changes to the company's ownership, headquarters location, or tax residency.

Business Secretary Jonathan Reynolds described the approval as a "good deal for the U.K." and said, "We have negotiated something which secures the long-term future of Royal Mail and gives it the fresh start that we need."

Founded in the 1500s as a service for the monarchy and the royal court, Royal Mail became a public postal service in the 1600s. It was privatized in 2013 but has struggled to modernize amid a sharp decline in postal service usage.

Daniel Kretinsky, who already owns a 27 percent stake in IDS, has extensive business interests across Europe, including energy and retail. His holdings include stakes in U.K. supermarket chain Sainsbury's and infrastructure such as the Eurstream pipelines that transport Russian gas through Ukraine and Central Europe.

EP Group has previously said it sees IDS as a strong business with significant potential to emerge as a leading postal logistics provider in Europe.

The acquisition now awaits shareholder approval, with the deal expected to be finalized in early 2025.