The UK government has approved Czech billionaire Daniel Kretinsky’s takeover of Royal Mail’s parent company, International Distribution Services (IDS), subject to a series of legally binding conditions designed to safeguard the postal service’s future and protect British interests, Bloomberg reports.
The deal, announced today, secures significant investment in Royal Mail and protects the jobs of its more than 150,000 postal workers, according to Business Secretary Jonathan Reynolds. He hailed the agreement as “yet another example of this government’s commitment to working hand in hand with business.”
Key stipulations include a government-held “golden share,” granting veto power over major corporate decisions. This prevents any relocation of Royal Mail’s headquarters or a change of its tax residence outside the UK. Furthermore, any future listing of Royal Mail shares within the next five years must occur on a London Stock Exchange.
The agreement also incorporates an in-principle deal with unions representing Royal Mail’s workforce. This follows Kretinsky’s May acquisition of a significant stake in IDS, exceeding a quarter of its shares, and his subsequent statement to Bloomberg News highlighting the need for investment to maintain Royal Mail’s market position.
The sale of Royal Mail to foreign ownership has been a politically sensitive issue, given the company’s privatization by the Conservative-Liberal Democrat coalition government in 2013 and its previous status as a state-owned enterprise.
