The sale of Royal Mail to Czech billionaire Daniel Kretinsky and his EP Group is nearing completion and could be confirmed within the next two weeks, according to sources.
Kretinsky has agreed to additional concessions to ensure the deal’s success. Unions, including the Communication Workers Union (CWU), have had constructive meetings with his advisors, though they remain cautious.
The deal requires approval under the National Security and Investment Act, although the government already conducted a review when Kretinsky increased his stake. Among his proposed guarantees are the maintenance of the universal service, protection of pension surpluses, and adherence to union demands, including a ban on compulsory redundancies until 2025.
The board of Royal Mail’s parent company has recommended the £3.6bn offer to shareholders, and it is expected that the majority will approve it. Royal Mail continues to face challenges, including deteriorating financial performance, customer complaints about delivery delays, and a sharp decline in letter volumes. However, parcel delivery has become more profitable.
Kretinsky has stated he will honor the universal service obligations but supports Royal Mail’s proposed reforms. Both the EP Group and the Department for Business have declined to comment on the situation.
