EP Group Secures Royal Mail in Agreement with the UK Government

The UK government has reached an agreement allowing Czech billionaire Daniel Kretinsky's industrial conglomerate EP Group to acquire International Distribution Services (IDS), the parent company of Royal Mail. The deal, valued at £3.57 billion ($4.50 billion), guarantees the continuation of the iconic British postal service's operations within the UK.

The agreement between EP Group, the UK government, and labor unions includes various protective measures for Royal Mail's services and workforce. These measures were crucial in overcoming obstacles to the acquisition, initially agreed upon in May.

Completion of this deal marks the end of the Royal Mail's British ownership, a postal service known for inventing the first adhesive postage stamp. Royal Mail, with a history of over 500 years, has faced challenges recently due to declining letter volumes and increasing competition from new courier companies. The UK government privatized Royal Mail nearly a decade ago, listed it on the London Stock Exchange, and renamed it IDS.

The terms of the agreement with EP Group involve retaining a "golden share" that grants the government the authority to block any attempts to relocate Royal Mail's headquarters or tax residence outside the country. EP Group has committed to maintaining Royal Mail as a universal service provider within the UK and has agreed not to change the control of Royal Mail or its delivery business GLS for at least three years following the completion of the acquisition. The group also pledged to comply with existing regulatory conditions and to maintain the current corporate structure.

Additionally, EP Group vowed to meet and negotiate with the unions representing Royal Mail workers, including the Communication Workers Union (CWU) and CMA Unite, which represent frontline and managerial staff. The CWU emphasized that the agreement includes commitments to job security and other legally binding assurances regarding the future of Royal Mail.