Daniel Křetínský bid £5.3 billion to get owner Royal Mail permission from the UK government
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The sale of Royal Mail to Czech billionaire Daniel Křetínský has been approved by the UK government, paving the way for the previously state-owned postal service provider to move to foreign ownership.
Owner Royal Mail’s planned £5.3 billion acquisition of International Delivery Services will be announced on Monday morning, according to people familiar with the matter.
Both sides have agreed a deal in May has received support from management, but is still waiting for the official green light.
Křetínský’s EP Group has been locked in late negotiations with officials and the postal workers’ union as it seeks further guarantees on the transaction.
The original deal to acquire Royal Mail came with various commitments, including retaining its headquarters in the UK, recognizing the postal workers’ union and maintaining its obligation to deliver mail anywhere in the UK. UK at the same cost.
As part of the final deal, the British government will retain so-called “golden shares” in the postal service, giving it special rights in managing the company, the people said.
Křetínský, known for his investments in UK supermarket chain J Sainsbury and football club West Ham United, has also previously made a commitment to honor delivery obligations that Royal Mail warned The newspaper has long been limiting its services.
Earlier this month The British regulator was fined Royal Mail £10.5m after the group failed to hit its performance target, adding pressure to the postal service.
Communications industry regulator Ofcom said the group delivered just 74.7% of first-class mail within one working day of receipt and 92.7% of second-class mail within three working days.
These levels are much lower than the target of 93% and 98.5% respectively.
The latest punishment highlights the challenge facing Křetínský, who has pledged to modernize Royal Mail after years of tense relations with postal staff and struggles to adapt to developments in shopping online.
The government and Křetínský declined to comment. IDS representatives did not immediately respond to a request for comment outside business hours. The BBC previously reported the government’s approval.
