Business Secretary Jonathan Reynolds announced on 16 December that EP Group, led by Daniel Křetínský, has agreed to a series of measures ensuring Royal Mail remains a British institution while transitioning to private ownership.
The agreement includes a unique ‘Golden Share’ mechanism preventing Royal Mail from moving its headquarters abroad or changing its tax residency without government approval. This ensures the company’s core operations remain firmly rooted in the United Kingdom.
EP Group has committed to several critical protections, including:
- Maintaining the universal postal service
- Preserving the “one-price-goes-anywhere” service model
- Continuing six-day-a-week first-class letter delivery
- Retaining the company’s headquarters in Britain
The deal incorporates financial safeguards designed to maintain Royal Mail’s sustainability. These include restrictions on value extraction contingent upon meeting specific financial health and service quality benchmarks.
Environmental targets are also embedded in the agreement, with Royal Mail committing to achieve net zero emissions by 2040 and its sister company GLS targeting zero CO2 emissions by 2045.
The agreement explicitly protects workers’ interests, with EP Group pledging to:
- Recognise postal worker unions
- Negotiate in good faith with union representatives
- Preserve existing employment agreements
“We are pleased to have reached a negotiators settlement with EP Group covering crucial areas such as job security, the governance of the company, a meaningful stake in the business for employees, restoring quality of service, legally binding commitments and improving the terms and conditions of our members,” said Dave Ward, Communication Workers Union General Secretary.
Postal Services Minister Justin Madders added:
“We have agreed these commitments with EP Group with the intention of securing the best outcome possible for Royal Mail’s customers, incentivising high performance and protecting the important services communities rely on.”
Daniel Křetínský, EP Group Chairman, described the deal as “historic:
“EP Group is very pleased to have reached this historic agreement with the Business Secretary to safeguard the future of Royal Mail, under EP Group ownership.We would like to thank the Business Secretary for the constructive negotiations that have resulted in unprecedented commitments and undertakings that demonstrate the high regard EP Group has for Royal Mail as an institution, the service it provides to millions of UK homes and businesses, and Royal Mail employees.”