The UK Labour government of Sir Keir Starmer has approved the takeover of the Royal Mail postal service by Czech oligarch Daniel Křetínský and his companies.

The GBP5.3bn sale (€6.4bn) is set to be announced on 16 December, Financial Times wrote referring to its sources.  

“As part of the final deal, the UK government will retain a so-called 'golden share' in the postal service giving it special rights over the governance of the company,” FT also wrote with reference to people familiar with the matter.  

The go-ahead is also supposed to entail a number of commitments, such as keeping the Royal Mail UK headquarters, recognising the workers’ union and keeping up “the obligation to deliver mail everywhere in the UK at the same cost”.

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 had turned down an indicative GBP4.5bn takeover bid in April. Křetínský already controls 27.5% of IDS, which also owns the Netherlands-based parcel business GLS. 

The British government of Sir Keir 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. Křetínský and his business partner Patrik Tkáč of Slovak J&T Finance Group already triggered a security review in August 2022 after they increased their shareholding in the Royal Mail above 25%.

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 criticised 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.

The over 500-year-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.