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Czech billionaire Daniel Křetínský’s planned £3.6 billion ($4.5 billion) acquisition of Royal Mail’s parent company, International Distributions Services PLC (IDS), has received conditional approval from the U.K. government, his conglomerate EP Corp. Group AS announced Monday.

The deal, revealed in May, cleared a significant hurdle after being reviewed under the National Security and Investment Act 2021. The government imposed several conditions to safeguard Royal Mail’s iconic status and ensure its services remain robust for British consumers.

Government Safeguards Royal Mail’s Legacy

Křetínský committed to maintaining the long-term sustainability of the 388-year-old postal service. EP Corp. emphasized its dedication to "safeguarding the important role that Royal Mail plays in the U.K."

The government will retain a "golden share" in IDS, which ensures the company remains U.K.-based and pays taxes domestically unless approved otherwise. EP Corp. also pledged to uphold Royal Mail’s universal service obligation, requiring six-day delivery to all U.K. locations at a fixed price.

Additional restrictions include a five-year ban on cash returns or financial rewards to owners unless strict performance targets are met. Ownership changes will also be restricted for three years following the deal.

Union Agreements and Next Steps

EP Corp. reached agreements with IDS's two key unions, including the Communication Workers Union (CWU), which represents frontline workers. CWU General Secretary Dave Ward highlighted commitments to job security, improved service quality, and better employee terms.

Approval is still required from the European Commission before the acquisition can proceed.

Křetínský's Expanding U.K. Influence

Křetínský, who already owns a 27% stake in Premier League football club West Ham United and a minority share in Sainsbury’s, would become the first foreign owner of the national postal service if the deal is finalized.

IDS Chair Keith Williams praised the government’s approval, calling it an "important milestone." He stressed that ownership change must be coupled with reforms to sustain Royal Mail's future.

Legal Counsel

Křetínský’s EP Corp. is represented by Kirkland & Ellis LLP and Paul Weiss Rifkind Wharton & Garrison LLP, with key partners including Dipak Bhundia, Jiri Peterka, and Stefan Arnold-Soulby. IDS is advised by Slaughter and May, while Hogan Lovells guided the U.K. government.

EP Corp. did not immediately comment on the latest developments.