Czech energy oligarch Daniel Křetínský is to finalise his pursuit of the Royal Mail, the world’s oldest operating postal company, “in the next two weeks”, BBC reported, quoting sources close to the deal.   

BBC also reported that “Křetínský has agreed to make extra concessions in order to clinch the takeover”.

These include maintaining deliveries of letters six days per week and parcels Monday to Friday, not to raid the pension surplus, keeping the brand name and Royal Mail headquarters and tax residency in the UK for the next five years, and respecting union demands for no compulsory redundancies to take place until 2025.  

“It is thought additional safeguards may include extending the duration of the guarantees he has offered,” BBC wrote, noting that the Czech side declined to comment.

Kretinsky's EP Group struck a deal to buy International Distribution Services (IDS), owner of Royal Mail, after its improved offer was recommended by the company's board  in May. IDS turned down an indicative £4.5bn takeover bid in April. Kretinsky already controls 27.5% of IDS, which also owns the Netherlands-based parcel business GLS. 

The British government of Sir Keith Starmer launched a probe into the deal under the UK's National Security and Investment Act in the summer, including looking into potential Russian links.

Křetinský’s regional energy behemoth EPH is a 49% shareholder in Slovakia’s gas transmission utility Eustream, bringing Russian gas into Europe, and EPH also exercises managerial control over Eustream. The remaining 51% share is held by the Slovak state.

Besides his past contacts with Gazprom and high-profile representatives of Russian businesses, Křetínský is also chastised by environmental and energy analysts in Central Europe for his carbon footprint, with EPH referred to as one of the “dirtiest” companies in the region.

BBC noted that Business Secretary Jonathan Reynolds referred to Křetínský as a "legitimate business figure" when speaking in front of MPs this week and that his “alleged links to Russia had already been reviewed and dismissed when he became the biggest shareholder in the company”, the broadcaster wrote.

Kretinsky and his business partner Patrik Tkac of Slovak J&T Finance Group triggered a security review in August 2022 after they increased their shareholding in Royal Mail above 25%.

BBC also reported that the Communication Workers Union (CWU)  “said meetings with the EP Group have been constructive”,  though some sources say CWU remains “wary” of Křetínský.

In the UK, the Czech tycoon already owns stakes in supermarket chain J Sainsbury and English Premier League football club West Ham United.

The over half-a millennium-old Royal Mail has been facing questions as to its future shape and operations in a world dominated by the e-commerce services of global tech giants such as Amazon. The company employs over 160,000 people and has been wracked by strikes recently. 

There is speculation that Křetinský aims to break up IDS and sell off GLS. He told BBC earlier this year that "as long as I am alive" he would honour the universal service obligation, but that he is in favour of Royal Mail reforms.

Křetínský’s companies have also been investing in e-commerce platforms across Central Europe.