Czech billionaire Daniel Kretinsky's EP Group said today it agreed to certain terms with the UK government for its takeover of Royal Mail's parent, paving way for a green light on the tightly-scrutinised deal.
Royal Mail parent International Distribution Services (IDS) had agreed to a £3.57 billion takeover by EP Group in May, and the deal has faced review under the National Security and Investment Act since August.
As part of the agreed terms, no additional security or guarantees can be placed on Royal Mail's assets for five years after the acquisition, effective after the completion of the takeover, EP Group said.
"Today's announcement marks an important milestone in the approvals process," said Keith Williams, non-executive chair of IDS.
UK Business Secretary Jonathan Reynolds said Kretinsky had committed to protect Royal Mail's postal network, and he had secured a "golden share" that would ensure its headquarters remained in Britain and it would continue to pay UK taxes.
He said the deal provided a secure future to thousands of workers and customers and would ensure a financially stable Royal Mail.
"Today's announcement marks an important milestone in the approvals process," said Keith Williams, non-executive chair of IDS.
Earlier today, the BBC and the Financial Times reported that the UK government had approved the sale.
