Royal Mail Heads for New Era: Czech Takeover Approved

The UK government approved a £3.6 billion deal to sell Royal Mail's parent company to Czech billionaire Daniel Kretinsky. The takeover, pending since May due to security laws, keeps the headquarters in the UK and grants the government a 'golden share' to approve major changes.

The British government has sanctioned the sale of Royal Mail's parent company to Czech billionaire Daniel Kretinsky, marking the postal service's transition to foreign ownership for the first time in its storied 500-year history.

The £3.6 billion acquisition of International Distribution Services (IDS) by Kretinsky's EP Group received official approval, necessitated by national security concerns given the postal service's pivotal role in the UK. Despite the foreign takeover, Royal Mail will maintain its headquarters in Britain, and the government retains a 'golden share', enabling it to vet any major changes to the service's structure or location.

This acquisition is expected to conclude in early 2025, representing a significant shift for Royal Mail, an institution dating back to the 1500s, once exclusively serving the monarchy. Despite its rich history, Royal Mail has faced challenges adapting to declining postal service usage since its privatisation in 2013.

(With inputs from agencies.)