(MENAFN- Kuwait News Agency (KUNA)) LONDON, Dec 16 (KUNA) -- The sale of the UK's Royal Mail's parent company to a Czech billionaire has been approved by the government.
The GBP-3.6-billion takeover by Daniel Kretinsky's EP Group has been given the go-ahead after agreeing "legally binding" undertakings, Department for Business and Trade statement said.
The government will retain a so-called "golden share" that will require it to approve any major changes to Royal Mail's ownership, HQ location and tax residency.
EP Group will also have to maintain the one-price-goes-anywhere Universal Service Obligation (USO), which currently means it has to deliver letters six days per week, Monday to Saturday, and parcels Monday to Friday.
The takeover of Royal Mail's parent company, International Distribution Services (IDS), is expected to be completed early next year.
Royal Mail, which was split from the Post Office and privatised a decade ago, has seen its performance deteriorate in recent years, leading to heavy financial losses.
Last week, Royal Mail was fined GBP-10.5-million by the regulator Ofcom for failing to meet delivery targets for first and second class mail. (end)
nbs

MENAFN16122024000071011013ID1108999171