Royal Mail to Enter Foreign Ownership for the First Time in 500 Years

The UK government has approved the £3.6 billion sale of Royal Mail’s parent company to Czech billionaire Daniel Kretinsky.

The UK government has approved the sale of Royal Mail’s parent company to Czech billionaire Daniel Kretinsky, marking the first time in its 500-year history that the postal service will be under foreign ownership.

On Monday, authorities confirmed that Kretinsky’s EP Group would proceed with its £3.6 billion ($4.6 billion) acquisition of International Distribution Services (IDS), the parent company of Royal Mail. The deal, agreed upon in May, had been awaiting approval under national security laws due to the strategic importance of the postal service.

Despite the change in ownership, Royal Mail will remain based in the UK. As part of the agreement, the government will retain a “golden share,” allowing it to approve any major changes to the company, including alterations to its ownership, headquarters, and tax residency.

Business Secretary Jonathan Reynolds described the agreement as “a good deal for the UK,” ensuring Royal Mail’s long-term future and providing it with a “fresh start.”

Royal Mail, founded in the 1500s as a royal service, became a public postal service in the 1600s and was privatised in 2013. In recent years, it has faced challenges as demand for traditional postal services has sharply declined.

Kretinsky, whose business interests span Europe, already holds a 27% stake in IDS. His firm also owns significant retail investments in the UK, including a share of supermarket chain Sainsbury’s. EP Group sees IDS as a promising business, aiming to establish it as a leading postal logistics company in Europe. The acquisition, pending shareholder approval, is expected to be finalised in early 2025.

Frances Ibiefo

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