Approval of Czech billionaire’s takeover of Royal Mail

The government has approved the sale of Royal Mail’s parent company to a Czech billionaire.

The BBC understands that the £3.6 billion takeover of Daniel Kratinsky’s EP Group will be announced on Monday morning.

The government would retain a so-called “golden share” that would require it to approve any major changes in Royal Mail’s ownership, headquarters location and tax residency.

Other commitments to the unions included workers receiving 10% of any profits paid to Kratinsky, as well as the creation of a workers’ group that would meet monthly with Royal Mail directors to discuss the issue. Be able to voice how it is played.

Mr. Kratinsky had already offered the following guarantees to secure the deal.

• Maintaining Universal Service Obligation (USO) anywhere at one price, which means it has to send parcels six days a week, Monday to Saturday, and Monday to Friday.

• Not to raid pension surpluses.

• Brand name and Royal Mail headquarters and tax residency in the UK for the next five years

• No mandatory redundancies (by 2025) respecting union demands

The entrepreneur told the BBC earlier this year that he would honor the USO – in whatever form – “for as long as I live”.

The USO is currently under review, with Royal Mail proposing to the regulator Ofcom that reducing second-class deliveries to every other weekday would save up to £300m a year and give the business a “fighting chance”.

In addition to owning 27% of West Ham United football club and 10% of Sainsbury’s, Mr Kratinsky’s companies also own a gas transmission service that still buys a lot of Russian gas with the consent of the European Union and to pay for it. Lower levels reach Europe.

was called for review under Takeover. National security As laws, it is considered as important national infrastructure.

Speaking to MPs in November, Business Secretary Jonathan Reynolds referred to Mr Kratinsky as a “legitimate businessman” whose alleged links to Russia had already been investigated when he was arrested nearly two years ago. He was sacked when he became the largest shareholder of the company.

Unions met Kratinsky’s EP group at the weekend to hammer out additional commitments and agree the package in principle but it needs to be put through an “internal democratic process”.

Royal Mail, which was privatized a decade ago after being separated from the Post Office, has seen its performance deteriorate in recent years, leading to huge financial losses.

Customers have also complained about delivery, important medical appointments and legal documents not being delivered on time.

last week, Royal Mail was fined £10.5m. Failure to meet delivery targets for first and second class mail by regulator Ofcom.

Ofcom said Royal Mail’s poor service was “now eroding public confidence in one of Britain’s oldest institutions”.

Royal Mail’s owner International Distribution Services (IDS) said externally it had made “substantial” improvements this year to try to improve.

The number of letters sent in the UK has fallen, with half the number sent in 2011.

Meanwhile, parcel delivery has become more popular and more profitable.

Parent company IDS made a small profit last year driven entirely by its German and Canadian logistics and parcels businesses, offsetting losses at Royal Mail.

Mr Kretsinski told the BBC he plans to invest heavily in the rollout of delivery lockers to make online deliveries more efficient, as has been done across Europe.

Daniel Kratinsky began his career as a lawyer in his hometown of Brno before moving to Prague.

He then made serious money in Central and Eastern European energy interests.

This includes Eustream, which transports Russian gas through pipelines that pass through Ukraine, the Czech Republic and Slovakia.

He then diversified into other investments, including a nearly 10% stake in UK supermarket chain Sainsbury’s and a 27% stake in Premier League club West Ham United.

According to reports, the Czech businessman is worth around £6 billion.