Britain Approves £3.6 Billion Sale of Royal Mail to Czech Billionaire Daniel Kretinsky

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The sale of Royal Mail to Czech billionaire Daniel Kretinsky involves several key terms and conditions:

Purchase Price: The deal is valued at £3.6 billion ($4.5 billion) for the takeover of International Distribution Services (IDS), the parent company of Royal Mail.

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Government Approval: The British government has approved the sale, ensuring that Royal Mail will continue to be headquartered in the UK and that its tax residency remains in the country for the next five years. The government also retains a "golden share," giving it veto power over any changes to Royal Mail's headquarters and tax residency.
Worker Protections: To gain government approval, Kretinsky made several concessions. These include granting Royal Mail workers a 10 percent share of any dividends he receives and promising not to raid the pensions surplus.
Service Commitments: Kretinsky has committed to maintaining the Universal Service Obligation (USO), which ensures that Royal Mail delivers mail six days a week to all 32 million UK addresses for the price of a stamp. He also promised to maintain the Royal Mail brand name and not to break up the postal giant.
Government and Union Endorsements: The deal has received endorsements from both the government and union leaders. The government sees the deal as a way to secure a financially stable future for Royal Mail, while union leaders have confirmed the agreement after meetings with Kretinsky over the weekend.
Recent Performance and Challenges: Royal Mail has faced significant challenges in recent years, including falling parcel volumes, delivery delays, and strikes over pay. The company was recently fined £10.5 million by the communications regulator Ofcom for delays in delivering mail.

These terms and conditions aim to ensure the continuity of services, protect workers' interests, and maintain the operational and financial stability of Royal Mail under new ownership.

Britain Approves £3.6 Billion Sale of Royal Mail to Czech Billionaire Daniel Kretinsky

Preview

The sale of Royal Mail to Czech billionaire Daniel Kretinsky involves several key terms and conditions:

Purchase Price: The deal is valued at £3.6 billion ($4.5 billion) for the takeover of International Distribution Services (IDS), the parent company of Royal Mail.

Preview

Government Approval: The British government has approved the sale, ensuring that Royal Mail will continue to be headquartered in the UK and that its tax residency remains in the country for the next five years. The government also retains a "golden share," giving it veto power over any changes to Royal Mail's headquarters and tax residency.
Worker Protections: To gain government approval, Kretinsky made several concessions. These include granting Royal Mail workers a 10 percent share of any dividends he receives and promising not to raid the pensions surplus.
Service Commitments: Kretinsky has committed to maintaining the Universal Service Obligation (USO), which ensures that Royal Mail delivers mail six days a week to all 32 million UK addresses for the price of a stamp. He also promised to maintain the Royal Mail brand name and not to break up the postal giant.
Government and Union Endorsements: The deal has received endorsements from both the government and union leaders. The government sees the deal as a way to secure a financially stable future for Royal Mail, while union leaders have confirmed the agreement after meetings with Kretinsky over the weekend.
Recent Performance and Challenges: Royal Mail has faced significant challenges in recent years, including falling parcel volumes, delivery delays, and strikes over pay. The company was recently fined £10.5 million by the communications regulator Ofcom for delays in delivering mail.

These terms and conditions aim to ensure the continuity of services, protect workers' interests, and maintain the operational and financial stability of Royal Mail under new ownership.