Thomas Samson/AFP via Getty Images
The sale of Royal Mail's parent company to a Czech billionaire has been approved by the government.
The £3.6 billion buyout by Daniel Kretinsky's EP Group will be announced on Monday morning, according to BBC reports.
The government will retain a 'golden share' which will require it to approve any major changes to Royal Mail's ownership, head office location and tax residency.
Other commitments to the unions include workers getting a 10% share of any dividend paid to Kretinsky, as well as the formation of a workers' group which will meet monthly with Royal Mail directors to give employees more big voice in how the company is run.
Mr. Kretinsky had already offered the following guarantees in an attempt to close the deal:
Maintain a single-price universal service obligation (USO), meaning it must deliver letters six days a week, Monday through Saturday, and packages Monday through Friday. Don't loot the pension surplus. Retain the Royal Mail brand and head office and tax residency in the UK for the next five years Respect union demands for no compulsory redundancies (until 2025)
The entrepreneur told the BBC earlier this year that he would honor the USO – whatever form it takes – “for as long as I'm alive”.
The USO is currently under review, with Royal Mail suggesting to regulator Ofcom that reducing second-class deliveries to every other weekday would save up to £300m a year and give the company “a chance to fight”.
As well as owning 27% of West Ham United football club and 10% of Sainsbury's, Mr Kretinsky's companies also own a gas transport service which still carries very small quantities of Russian gas to Europe, paid for and with the consent of the EU.
The takeover has been subject to review under national security laws because it is considered vital national infrastructure.
Speaking to MPs in November, Business Secretary Jonathan Reynolds called Mr Kretinsky a “legitimate business figure” whose alleged links to Russia had already been scrutinized and dismissed when he became the main shareholder of the company almost two years ago.
Rui Vieira/PA
The unions met with Kretinsky's parliamentary group this weekend to outline the additional commitments and agreed on the principle of the package, but must subject it to the “internal democratic process”.
Royal Mail, which was separated from the Post Office and privatized ten years ago, has seen its performance deteriorate in recent years, leading to heavy financial losses.
Customers also complain about deliveries, with important medical appointments and legal documents not delivered on time.
Last week, Royal Mail was fined £10.5 million by regulator Ofcom for failing to meet its delivery targets for first and second class mail.
Ofcom said Royal Mail's poor service was now “eroding public trust in one of the UK's oldest institutions”.
International Distribution Services (IDS), owner of Royal Mail, said outside it had carried out “substantial” reforms this year to try to make improvements.
The volume of letters posted in the UK has fallen, with half the number sent compared to 2011 levels.
Meanwhile, parcel deliveries have become more popular – and more profitable.
Parent company IDS made a small profit last year entirely generated by its logistics and parcels businesses in Germany and Canada, offsetting losses at Royal Mail.
Mr Kretsinky told the BBC he intended to invest heavily in rolling out delivery lockers to make online deliveries more efficient, as has happened across Europe.
Who is Daniel Kretinsky?
Daniel Kretinsky began his career as a lawyer in his hometown of Brno, before moving to Prague.
He then made a lot of money from energy interests in Central and Eastern Europe.
This includes Eustream, which transports Russian gas via pipelines through Ukraine, the Czech Republic and Slovakia.
He later diversified into other investments, including a nearly 10% stake in British supermarket chain Sainsbury's and a 27% share in Premier League club West Ham United.
The Czech businessman is worth around £6 billion, according to reports.
