£3.6BN OFFER FOR ROYAL MAIL HAS BEEN ACCEPTED BY ITS BOARD – But the government has final approval powers
A £3.6bn offer for Royal Mail has been accepted by its board but the government has final approval powers because Royal Mail is a nationally important company.
The prospective new owner Mr Kretinsky has said he will not walk away from the requirement to deliver letters throughout the UK six days a week, as long as he is running the service.
Shareholders are expected to approve the deal on 25 September, but the government also has a say over whether it goes ahead.
Currently the Universal Service Obligation (USO) requires Royal Mail to deliver letters six days a week throughout the country for the same price. But questions have been raised over whether the service could be reduced in the future.
The Royal Mail board agreed a £3.6bn takeover offer from Mr Kretinsky in May for the 500-year-old organisation, which em