The UK government has struck a deal with Czech billionaire Daniel Křetínský’s EP Group to secure the future of Royal Mail, a move that could have significant implications for the postal service in the UK.

The agreement, announced on 16 December, includes legally binding commitments aimed at maintaining Royal Mail’s services, workforce protections, and its headquarters in Britain. 

Protecting jobs and services

Under the agreement, Royal Mail will remain headquartered and taxed in the UK, preserving thousands of jobs and ensuring that tax revenues continue to support public finances. A government-held “Golden Share” ensures these measures cannot be overturned without approval, even if Royal Mail changes hands again in the future. 

The deal also safeguards Royal Mail’s role as the universal service provider and maintaining the “one-price-goes-anywhere” service, with first-class letters delivered six-days a week.

Modernising the service

EP Group Chairman Daniel Křetínský said: “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.”

EP Group have committed to achieve net zero by 2040, including by modernising and electrifying its fleet and cutting emissions.

What the deal means for businesses

For small businesses, Royal Mail’s stability is critical. Many rely on the postal service for affordable and reliable delivery of goods, particularly those in rural areas where other providers are less active. The government and EP Group have highlighted their commitment to supporting these services, but the real test will be whether Royal Mail can deliver consistent performance improvements while managing the costs related to modernising. 

The government has framed the deal as a move to kickstart economic growth by providing stability to a national institution that strengthens the foundations of the UK’s supply chain and delivers better public services. However, business owners will likely be watching closely to see whether promises of investment will translate into tangible improvements. 

Will the change in ownership bring success?

The commitments made to environmental goals and improved infrastructure are ambitious and will require careful management by Royal Mail’s new owners.

For now, businesses that depend on Royal Mail can take some comfort in the agreement’s promises of continuity and investment. However, the long-term success of the deal will depend on the new owner’s ability to help Royal Mail adapt to changing market conditions while meeting the needs of its diverse customer base.