Royal Mail sold to Czech billionaire for £5.3bn

LONDON Dec 16: Royal Mail, the iconic British postal service, has been sold to Czech billionaire Daniel Kretinsky’s EP Group in a £5.3bn deal approved by the UK government. The sale follows Royal Mail’s ongoing efforts to restructure and adapt to changing market conditions, including proposed delivery changes submitted to Ofcom.

Under the legally binding agreement, Royal Mail’s headquarters, tax base, and corporate structure will remain British for five years, with the universal service obligation to deliver letters to every UK address, six days a week, at a uniform price remaining indefinitely. The government will also retain a “golden share” for approving major changes.

The deal includes a provision for employees to receive 10% of any dividends paid to Mr. Kretinsky, with a workers’ group formed to meet monthly with company directors. This measure requires union approval and ratification.

Dave Ward, head of the Communications Workers Union (CWU), welcomed the agreement, stating, “This agreement provides the foundation to rebuild Royal Mail. These have been challenging negotiations, but we have delivered what by any measure is a groundbreaking agreement which puts postal workers and customers back at the heart of everything Royal Mail does.”

Royal Mail’s turnaround efforts include proposed cuts to some deliveries, with NHS leaders cautioning that reducing second-class deliveries to two days a week could impact patient safety. The company aims to reduce the net cost of the Universal Service by up to £300 million per year through its transformation plans.