Royal Mail close to being sold to Czech billionaire

The sale of Royal Mail to Czech billionaire Daniel Kretinsky's EP Group in a £3.6bn deal is reportedly nearing completion and could be confirmed within the next fortnight, sources close to the deal have revealed.

Kretinsky is said to have agreed to additional concessions in a bid to secure the takeover, the BBC has learned.

Union representatives, including the Communication Workers Union (CWU), have engaged in meetings with Kretinsky’s advisors this week. While some insiders describe union sentiment as "wary," the CWU characterised the discussions with EP Group as "constructive."

The proposed deal remains subject to approval under the National Security and Investment Act. However, officials previously conducted a similar review when Kretinsky increased his stake in the company, potentially smoothing the process.

According to BBC, the entrepreneur has already offered to keep the brand name and Royal Mail's headquarters and tax residency in the UK for the next five years and not to raid the pension surplus. He has reportedly assured of respecting union demands for no compulsory redundancies to take place (until 2025).

Kretinsky, known as the Czech Sphinx because of his low profile, has promised to maintain the universal service of six days of deliveries per week with the same pricing across Britain.

Speaking in front of MPs on Tuesday, Business Secretary Jonathan Reynolds referred to Kretinsky as a "legitimate business figure" whose alleged links to Russia had already been reviewed and dismissed when he became the biggest shareholder in the company.

A spokesperson for the CWU said its meetings so far with the EP Group have been "honest and constructive and are set to continue in the coming days."

The board of Royal Mail owner, International Distribution Services (IDS), has recommended the £3.6bn offer price to its shareholders and it is expected sufficient numbers of them will accept, allowing the deal to go ahead.

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 year, parent company IDS made a small profit which was entirely generated by its German and Canadian logistics and parcels business, off-setting losses at Royal Mail.