The 508-year-old British postal service operator Royal Mail has been sold to Czech Republic billionare Daniel Kretinsky and that was announced on Monday.
The Department for Business and Trade has confirmed that the Business Secretary,Jonathan Reynolds,has today[16 December] received legally binding commitments from Royal Mail bidder Daniel Kretinsky that are intended to secure the long-term,sustainable future of Royal Mail whilst protecting crucial services for millions of customers across the UK.
The statement mentioned that this significant agreement,between the Department for Business and Trade and Daniel Kretinsky's EP Group,contains commitments that protect,and secure investment in,Royal Mail's postal network which is important to everyone from small business owners in Southampton to online shoppers in Shetland.
The department added that these commitments deliver on the Government's Plan for Change,kickstarting economic growth by providing stability to a national institution that strengthens the foundations of Britain's domestic supply chain and delivers better public services to people across the whole country.
The UK's Business and Trade Secretary is happy that the government has managed to reach a constructive agreement with the Czech businessman which will be beneficial to the people of the UK.
"For too many years progress on securing a stable future at Royal Mail has stalled,but from day one we have been committed to providing a secure future for thousands of workers and customers.
"Today's agreement is yet another example of this Government's commitment to working hand in hand with business to generate reform give respite to people right across the UK,as we are working towards ensuring a financially stable Royal Mail with protected links between communities other providers can't reach.
I'd like to thank EP Group and Daniel Kretinsky for their constructive approach to our discussions and their commitment to protecting this national icon.I look forward to working with them to fix the foundations and ensure Royal Mail continues to deliver for the communities and businesses who rely on it most,"said Jonathan Reynolds.
The department has revealed that the government has negotiated a 'Golden Share' which will ensure that,with very limited exception,the headquarters of Royal Mail cannot be moved abroad and that Royal Mail cannot change where it pays it taxes,in either case without UK government approval.
The department added that these restrictions will apply to any future owners of Royal Mail and,alongside other commitments to the brand and cypher,secure Royal Mail's identity as an iconic British institution whilst also allowing it to operate as a fully private company without day-to-day government interference.
The new owner of the Royal Mail has thanked Jonathan Reynolds for making that acquisition a reality and promised to make the postal service successfully.
"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.
EP Group is a long-term and committed investor with a mission to make Royal Mail a successful modern postal operator with high quality service and products for its customers.We look forward to delivering on this mission alongside our partners in government,"said Daniel Kretinsky,Chairman of EP Group.
The sale of Royal Mail has been accepted even by the union which is representing employees that are employed by that iconic business and the union is happy with agreements that are reached with the new owner.
"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.
This agreement provides the foundation to rebuild Royal Mail.These have been challenging negotiations but through the support of our members we have delivered what by any measure is a groundbreaking agreement which puts postal workers and customers back at heart of everything Royal Mail does,"said Dave Ward,General Secretary of Communication Workers Union.