By South China Morning Post | Created at 2024-12-16 13:01:29 | Updated at 2024-12-16 15:21:37
2 hours ago
Britain’s centuries-old Royal Mail is set to pass into foreign ownership after the UK government approved the takeover of its parent company by Czech billionaire Daniel Kretinsky’s EP Group on Monday.
The takeover of International Distribution Services (IDS) by EP Group is worth £3.6 billion (US$4.5 billion).
The “deal protects workers and key services whilst seeing Royal Mail continue to be headquartered in Britain, securing jobs and tax receipts in the UK”, the government said in a statement.
The government will hold a “golden share” in the former state monopoly Royal Mail which ensures it has veto power over Royal Mail’s headquarters being moved abroad and over changes to its tax residency.
Both parties have been waiting for the government green light since IDS in May accepted the takeover offer from the EP Group, which already held a near 28 per cent stake.
“For too many years progress on securing a stable future at Royal Mail has stalled,” Business Secretary Jonathan Reynolds said.
