Royal Mail under a New Flag: Křetínský Takes Over the Post

The British government has approved the sale of Royal Mail to Czech billionaire Daniel Křetínský, paving the way for the transition of the formerly state-owned postal service into foreign hands. The acquisition, valued at £5.3 billion, by Křetínský's International Distribution Services, which was tentatively agreed upon in May, has now received official approval. After intensive negotiations with representatives from the authorities and the postal workers' union, further assurances were requested to ensure a smooth transition. Key agreements of the deal include keeping the headquarters in the UK and adhering to the union's contractual obligations and nationwide delivery charges. A "golden share" grants the government the right to continue influencing corporate governance to secure the national importance of the postal service. Křetínský, known for his investments in J Sainsbury and West Ham United, promises to respect existing delivery commitments – a challenge since Royal Mail was recently fined £10.5 million by the regulator Ofcom for failing to meet performance targets. The lack of target fulfillment, particularly in first and second-class mail delivery, reflects the need for adjustment given the rise of online shopping. Neither the government nor Křetínský wished to comment on the acquisition at this time. There has also been no statement from International Distribution Services. The BBC previously reported on the approval.