The government approved the purchase of Royal Mail by Czech billionaire Daniel Kretinsky.
The EP Group of Kretinsky has been approved to purchase International Distribution Group at a price of PS3.6bn, provided that certain commitments are made to staff and service.
The government will keep a “golden stake” in Royal Mail that requires it to approve major changes regarding ownership, location of the headquarters and the place where the company files its tax returns.
The EP Group is also required to adhere to the “Universal Service Obligation” which requires it to deliver parcels and letters Monday to Friday.
Employees will get a share of 10% in dividends that are paid to Kretinsky. The company will form a workers’ group that will meet with directors every month.
Kretinsky stated that negotiations with the Government had resulted in “unprecedented undertakings and commitments which demonstrate the high regard EP Group holds for Royal Mail”.
“EP Group has a mission of making Royal Mail an innovative postal operator that provides high-quality service and products to its customers.
IDS received a fine from Ofcom last week for not meeting delivery targets for both first and second-class mail.
The unions welcomed the news cautiously. Sharon Graham, Unite’s general secretary, said that the agreement “opens up a new future for Royal Mail, its employees and their workforce.”
It is vital that the EP and government continue to work with Unite CMA, CWU and other unions to ensure Royal Mail delivers positive results for its employees and customers.
Dave Ward, the general secretary of Communication Workers Union said that the agreement will provide “the basis to rebuild Royal Mail”.
These were challenging negotiations, but we’ve delivered what is by any measure a groundbreaking deal that puts the postal workers and their customers back in the center of everything Royal Mail do.
The deal should be completed in the first quarter 2025.
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