Royal Mail closes in on takeover deal after ‘concessions agreed’ – reports
Daniel Kretinsky’s EP Group agreed to buy Royal Mail parent company International Distribution Services (IDS) earlier this year.
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Your support makes all the difference.The sale of Royal Mail to a Czech billionaire is close to being finalised, after extra concessions were agreed, according to reports.
Daniel Kretinsky’s EP Group agreed to buy Royal Mail parent company International Distribution Services (IDS) earlier this year.
The company struck the controversial deal in May but the move is now being reviewed by the Government under the National Security and Investment Act.
The BBC reported on Thursday that talks between the proposed owner and the Government have been positive and that the finalised deal “could be confirmed in the next two weeks”.
The deal would still need security approval after its deal is agreed with government.
The reports indicate that Mr Kretinsky, who is nicknamed the Czech sphinx, will commit to more concessions in order to push the deal through.
He had already guaranteed to maintain the delivery operator’s one-price-goes-anywhere “universal service”. The universal service currently requires Royal Mail to deliver letters six days a week and parcels five days a week, but is under review.
He has also pledged not to raid the group’s pension surplus, and keep the brand name and Royal Mail’s UK tax residency and headquarters.
There was also an agreement to respect union demand for no compulsory redundancies until 2025.
It is thought some of these safeguards, such as the commitment to avoid compulsory redundancies, could be extended as part of a new agreement.
Union representatives have also been reportedly meeting Mr Kretinsky’s advisers this week.
IDS and the Department for Business and Trade have been contacted for comment.