Following a vote on April 30, 80.06% of shareholders at International Distribution Services (IDS), which owns Royal Mail, have approved the sale of the company to Czech businessman Daniel Křetínský’s EP Group.
According to a statement on the Communication Workers Union (CWU), there is still likely to be a further four-week period before the current board resign and EP Group are in place to run the company. “We also understand this extended period is due to the current board fulfilling their final fiduciary responsibilities,” the statement added.
The sale of IDS, which was announced back in May 2024, is aimed at bringing Royal Mail back to profitability and overcoming the challenges associated with providing the Universal Service Obligation to all UK residents.
Recognizing the importance of Royal Mail as an iconic national institution, the government said in December 2024 it had negotiated a ‘Golden Share’ to ensure that, with very limited exception, the headquarters of Royal Mail cannot be moved abroad and that Royal Mail cannot change where it pays its taxes – in either case – without UK government approval.
“These restrictions will apply to any future owners of Royal Mail and, alongside other commitments to the brand and cypher, secure Royal Mail’s identity as an iconic British institution whilst also allowing it to operate as a fully private company without day-to-day government interference,” the UK government stated.
EP Group has also committed to honoring any new agreements entered into with the postal unions, recognizing that workers should be placed at the heart of a sustainable Royal Mail.
Commenting on the deal in December, Křetínský said, “EP Group is a long-term and committed investor with a mission to make Royal Mail a successful modern postal operator with high-quality service and products for its customers. We look forward to delivering on this mission alongside our partners in government.”
CWU response
Responding to the news that EP Group are the new owners of Royal Mail, CWU general secretary Dave Ward commented, “Today represents a pivotal moment in the history of Royal Mail – one of our country’s most iconic and important companies. We now have confirmation that EP Group, led by Daniel Křetínský, will be the new owners. This is a development that many will greet with skepticism and uncertainty. But the truth is that the biggest threat to the future of our postal services is the status quo.
“The current Royal Mail Group Board have destroyed the service, turned on their own employees and grossly mismanaged the company from top to bottom. The CWU have reached a groundbreaking agreement with EP Group that provides the platform for a fresh start and the rebuilding of Royal Mail.
“We will use the coming weeks and months to put the commitments contained within the agreement fully to the test. We will not hesitate to challenge EP Group if they do not fulfil their obligations to postal workers and customers.
“We will also ensure the government are fully engaged in this immediate process and the future strategy of the company in line with the separate agreement they have reached with EP Group.
“Royal Mail is a key part of the UK’s infrastructure and must be treated as such by politicians.”