The British government has approved the £3.6 billion (€4.34 billion) sale of International Distribution Services (IDS), the parent company of Royal Mail, to EP Group, owned by Czech billionaire Daniel Křetínský.
The decision, announced on Monday by IDS on the London Stock Exchange, makes Křetínský the new owner of the historic Royal Mail after 500 years of British ownership.
The government will retain a “golden share” in the company, ensuring its control over key decisions, such as changes to ownership, tax residency, or the headquarters location.
Royal Mail, which employs over 150,000 people, will continue operating under strict conditions agreed upon by EP Group. These include maintaining its Universal Service Obligation (USO), which guarantees letter delivery six days a week and parcel delivery Monday to Friday across the U.K. at a standard price.
Additionally, the agreement ensures that Royal Mail’s brand, headquarters, and tax residency will remain in the U.K. for at least five years. Workers will also benefit, with a commitment to allocate 10 percent of dividends paid to Křetínský to employees, alongside the establishment of a worker’s council to provide staff with a stronger voice in the company’s operations.
Daniel Křetínský, who has held a 27.5 percent stake in IDS since 2022, emphasized EP Group’s long-term commitment to preserving Royal Mail’s legacy while modernizing its operations. “EP Group is a long-term and committed investor with a mission to make Royal Mail a successful modern postal operator with high-quality service and products for its customers,” Křetínský said. He also acknowledged the historical significance of Royal Mail, stating he holds “maximum respect” for its tradition.
The acquisition was reviewed under national security laws due to Royal Mail’s status as critical national infrastructure due to Křetínský’s involvement in a gas transmission service that continues to transport reduced volumes of Russian gas to Europe under EU-approved terms.
The acquisition adds to Křetínský’s growing portfolio in the U.K., which includes a 27 percent stake in West Ham United Football Club and a 10 percent share in Sainsbury’s.
