LONDON: Britain’s iconic Royal Mail is set to fall into foreign hands for the first time in its centuries-long history after the UK government approved a £3.6 billion ($4.5 billion) takeover by Czech billionaire Daniel Kretinsky’s EP Group on Monday.
The deal marks a turning point for the once state-owned postal service, as Kretinsky moves to modernize the struggling company while pledging to preserve its British roots. The government, in an effort to retain control over key aspects, will hold a “golden share”, granting it veto power to prevent the Royal Mail’s headquarters or tax base from shifting abroad.
Britain’s Business Secretary Jonathan Reynolds emphasized the deal as “a step toward a stable future” for Royal Mail, which has faced years of financial turmoil, strikes over pay, and declining mail volumes. The agreement ensures that vital services—like six-day-a-week delivery to all 32 million UK addresses—remain protected under the Universal Service Obligation.
Kretinsky, a prominent investor already holding a 28% stake in International Distribution Services (IDS), the parent company of Royal Mail, reassured the public of his long-term commitment. “Our mission is to transform Royal Mail into a modern, efficient postal operator while delivering high-quality service for customers,” he said.
The announcement comes during a turbulent time for the postal operator. Just last week, communications regulator Ofcom fined Royal Mail £10.5 million for delays in deliveries. There have also been calls to reduce services to five—or even three—days a week to save millions, though such proposals remain controversial.
While some unions and workers remain wary of the acquisition, union leaders like CWU general secretary Dave Ward acknowledged the need for change. “The status quo is what will kill off postal services. Modernization is necessary,” Ward stated, suggesting the deal could be a lifeline for the struggling service.
Royal Mail, privatized in 2013, has been battered by shifting consumer habits as letter volumes plummet and online communication dominates. Yet its international parcels business, GLS, has shown resilience, fueled by booming e-commerce trends.
Market analysts described the takeover as “historic”. “Royal Mail’s legacy as a pillar of British service makes this moment monumental,” said Susannah Streeter of Hargreaves Lansdown. She added that while the EP Group brings opportunities to overhaul the aging infrastructure, reforms will take time to materialize.
The deal, expected to finalize by early 2025, symbolizes a new era for Royal Mail—one that balances tradition with the urgency to evolve in a rapidly changing world. Whether Kretinsky can deliver on his promises to modernize while honoring its legacy remains to be seen, but for Britain’s beloved postal service, the winds of change have undeniably arrived.
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