For the first time in its 500-year history, Royal Mail will be owned by a foreign entity after the British government approved the sale of its parent business to a Czech billionaire on Monday.
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 proceed, according to confirmation from authorities on Monday.
Due to the postal service’s significance in the United Kingdom, Kretinsky and IDS agreed to the agreement in May but are awaiting official approval under national security rules.
As part of the agreement, the British government will keep a “golden share” in the service, which means that any significant changes to Royal Mail’s ownership, headquarters location, or tax residence will require its approval.
The service will continue to have its headquarters in the United Kingdom. Early in 2025 is when the takeover is anticipated to be completed.
One of the oldest organizations in the United Kingdom, Royal Mail, was founded in the 1500s as a service reserved for the king and the royal court. In the 1600s, it became a public mail service.
Laptops 1000After being privatized in 2013, the corporation has had difficulty adjusting in recent years due to the sharp fall in postal service users.
