By ABC (Business) | Created at 2024-12-16 12:14:18 | Updated at 2024-12-24 13:16:37
1 week ago
Britain’s government has approved the sale of Royal Mail’s parent company to a Czech billionaire, paving the way for the postal service to pass into foreign ownership for the first time in its 500-year history
ByThe Associated Press
December 16, 2024, 6:46 AM
LONDON -- Britain's government gave the go-ahead Monday for the sale of Royal Mail's parent company to a Czech billionaire, paving the way for the postal service to pass into foreign ownership for the first time in its 500-year history.
Authorities confirmed Monday that the 3.6 billion-pound ($4.6 billion) takeover of Royal Mail's owner, International Distribution Services, by billionaire Daniel Kretinsky's EP Group, can go ahead.
Kretinsky and IDS agreed to the deal in May but had been waiting for official approval under national security laws because of the importance of the postal service in the U.K.
The service will remain headquartered in the U.K. and as part of the deal, Britain's government will retain a so-called “golden share” in the service, meaning it will need to approve any key changes to Royal Mail's ownership, headquarters location and tax residency.
The takeover is expected to be completed early in 2025.
Royal Mail, one of the U.K.'s oldest institutions, began in the 1500s as a service exclusively for the monarch and the royal court. It became a public postal service in the 1600s.
The company, which was privatized in 2013, has struggled in recent years to adapt as the number of people using the postal service continues to decline steeply.
