(Commonwealth_ The UK Business Secretary has confirmed receiving legally binding commitments from Daniel Křetínský, the Czech billionaire behind the £3.6 billion takeover bid for Royal Mail. These assurances aim to secure Royal Mail’s long-term sustainability while safeguarding essential services for millions across the UK. The agreement marks a significant milestone in the ongoing acquisition process led by Křetínský’s EP Group. International Distribution Services (IDS), Royal Mail’s parent company, formally recommended the cash offer in May 2024. However, progress had been slow due to the national importance of Royal Mail and the government’s cautious approach to ensuring the deal benefits all stakeholders.
The Department for Business and Trade outlined that the commitments from EP Group focus on protecting and investing in Royal Mail’s postal network. These measures aim to support small businesses and consumers alike, from entrepreneurs in Southampton to online shoppers in Shetland. The agreement aligns with the government’s broader economic strategy, dubbed the Plan for Change, which seeks to drive economic growth by stabilizing key national institutions like Royal Mail.
Business Secretary Jonathan Reynolds expressed optimism about the agreement, emphasizing the government’s dedication to securing Royal Mail’s future. “For too many years, progress on ensuring Royal Mail’s stability has stalled. From day one, we’ve been committed to providing a secure future for thousands of workers and customers,” Reynolds stated. He highlighted the importance of Royal Mail in maintaining connections between communities and commended Křetínský and EP Group for their collaborative approach. Reynolds added that the agreement ensures Royal Mail’s financial stability and continued role in delivering essential services to those who rely on it most.
A cornerstone of the agreement is the inclusion of a “golden share,” a provision designed to keep Royal Mail’s headquarters in the UK and prevent it from shifting its tax obligations abroad without government approval. These restrictions will also apply to any future owners of the company, ensuring that Royal Mail remains a British institution. EP Group Chairman Daniel Křetínský praised the constructive negotiations with the UK government, describing the agreement as historic. “EP Group is very pleased to have reached this historic agreement with the business secretary to safeguard the future of Royal Mail under EP Group ownership,” he stated. Křetínský reaffirmed EP Group’s commitment to transforming Royal Mail into a modern, successful postal operator delivering high-quality services to UK homes and businesses. He also expressed his appreciation for Royal Mail’s employees, highlighting their integral role in achieving long-term sustainability.
The agreement also reflects EP Group’s willingness to work collaboratively with postal unions, recognizing the importance of employees in driving the company’s success. The group has pledged to honor new agreements with unions, ensuring job security, fair governance, and improved terms and conditions for workers. Dave Ward, General Secretary of the Communication Workers Union (CWU), welcomed the settlement, calling it a significant step forward for employees. “We are pleased to have reached a negotiators’ settlement with EP Group covering crucial areas such as job security, the governance of the company, a meaningful stake in the business for employees, restoring quality of service, legally binding commitments, and improving the terms and conditions of our members,” he said.
The commitments extend beyond financial assurances, signaling a clear intention to protect Royal Mail’s role as a national icon and vital part of the UK’s domestic supply chain. By securing these legally binding provisions, the government has demonstrated its determination to balance business interests with public service responsibilities. This agreement is also a testament to EP Group’s investment philosophy, which focuses on long-term value creation and institutional preservation. By collaborating closely with the government and other stakeholders, Křetínský’s group aims to revitalize Royal Mail’s operations, ensuring it remains a reliable and modern postal service provider.
