The British government has approved the takeover of Royal Mail by Czech billionaire Danyll Kretinsky, Sky News reported Monday. The deal, worth 5.3 billion pounds, was agreed in May, but because Royal Mail is seen as an important national infrastructure, this requires a review by the government under the National Security Act.
According to a statement released on the 16th, Kretinsky’s EP Group promised to seek the UK government’s approval for major changes such as moving Royal Mail’s headquarters and tax locations overseas, and will remain in the UK for at least five years. In addition, EP group must indefinitely retain Royal Mail’s“Universal Service Obligation” to deliver mail at a flat rate to every address in the UK six days a week.
Royal Mail went through several tough years and was privatised in 2013. The company’s losses have soared as demand for mail has fallen sharply. Krettinsky, 49, is the 33rd Sunday Times Rich List with an estimated net worth of # 6BN, up # 2BN since the 2023.