The UK government has approved the £3.6bn acquisition of Royal Mail’s parent company by Czech billionaire Daniel Kretinsky's EP Group, following legally binding commitments to safeguard the nation’s postal service.

As part of the agreement, the government will retain a "golden share," granting it authority to oversee significant changes to Royal Mail, such as its ownership structure, headquarters location, and tax residency.

EP Group has also pledged to maintain the Universal Service Obligation (USO), which mandates the delivery of letters six days a week and parcels five days a week. Kretinsky, often referred to as the “Czech Sphinx” due to his low-profile business dealings, personally assured the continuation of the service, stating earlier this year that he would honor it "for as long as I am alive."

However, the USO’s future is under review. Royal Mail has proposed changes to the regulator Ofcom, including reducing second-class letter deliveries to every other weekday. The company claims such changes could save up to £300m annually and improve its financial sustainability. Ofcom is expected to make a decision on the proposed changes next year.

Kretinsky’s EP Group, which owns stakes in several major European businesses, now faces the challenge of turning around Royal Mail amid ongoing financial pressures. The company has committed to adhering to the USO’s current terms for as long as it owns Royal Mail, regardless of the review’s outcome.

The sale marks a pivotal moment in Royal Mail's history as it continues to navigate evolving market demands and increasing competition in the parcel delivery sector. With the government’s golden share in place, the iconic postal service remains under close scrutiny to ensure it meets public and regulatory expectations.

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