Britain’s Royal Mail set for foreign ownership as Czech billionaire Kretinsky’s EP Group takes over
Deal valued at £3.6 billion ($4.5 billion) ensures Royal Mail remains headquartered in Britain and retains jobs
Government to maintain a “golden share” with veto power over headquarters relocation and tax residency changes
EP Group, which already holds a near 28% stake, promises to protect key services and maintain the Universal Service Obligation (USO) to deliver mail six days a week to all 32 million UK addresses at a standard postage rate
Business Secretary Jonathan Reynolds emphasized the need for financial stability and protection for communities served by Royal Mail, which has struggled with declining parcel volumes, delivery delays, and industrial action over pay in recent years
Monday’s announcement follows government approval after months of negotiations, with Kretinsky pledging long-term investment and a commitment to making Royal Mail a modern, successful postal operator
Royal Mail was privatized in 2013 and employs about 153,000 staff, the majority of whom are linked to Royal Mail’s operations, with additional responsibilities in international parcels through GLS
Last week, Britain’s communications regulator Ofcom fined Royal Mail £10.5 million for delays in mail delivery, underscoring ongoing operational challenges for the postal service.