(Sharecast News) - The UK government has cleared the £3.6bn sale of Royal Mail parent company International Distribution Services to Czech billionaire Daniel Kretinsky's EP Group.
In a statement issued on Friday, EP Group said it had met requirements under Britain's National Security and Investment Act to "provide services that are in support of UK national security".
Under the terms of the deal, the government will keep a golden share in IDS that will require it to approve any major changes to Royal Mail's ownership, HQ location and tax residency.
EP Group will also have to maintain the Universal Service Obligation (USO), which currently means it has to deliver letters six days per week on a one-price-goes-anywhere basis, Monday to Saturday, and parcels Monday to Friday.
The USO is currently under review. Royal Mail has told industry regulator Ofcom that cutting second class deliveries to every other weekday would save up to £300m a year and give the business "a fighting chance".
Reporting by Frank Prenesti for Sharecast.com
International Distributions Services (IDS)
