The British government approved on Monday the sale of Royal Mail’s parent company to a Czech billionaire, marking the first time in its 500-year history that the postal service will fall into foreign ownership.
Authorities confirmed that the 3.6 billion-pound ($4.6 billion) acquisition of International Distribution Services (IDS), Royal Mail’s parent company, by Daniel Kretinsky’s EP Group, has been cleared to proceed.
Kretinsky and IDS had initially agreed to the deal in May but needed formal approval under the UK’s national security laws, given the vital role of the postal service.
Under the terms of the deal, Royal Mail will remain headquartered in the UK. The British government will also retain a “golden share” in the company, requiring its approval for any major changes to ownership, tax residency, or headquarters location.
The takeover is expected to be finalized in early 2025.
Royal Mail, one of the UK’s oldest institutions, was established in the 1500s as an exclusive service for the monarchy and royal court before evolving into a public postal service in the 1600s.
Although privatized in 2013, Royal Mail has faced significant challenges in recent years as letter volumes continue to decline sharply amid changing communication habits.
