Czech billionaire Kretinsky closing in on deal to buy Royal Mail - report

(Sharecast News) - The sale of Royal Mail to Czech billionaire Daniel Kretinsky's EP Group is reportedly close to being finalised and could be confirmed in the next two weeks. The BBC on Thursday cited sources close to the deal as saying that Kretinsky has agreed to make extra concessions in order to clinch the takeover.

It was understood that unions have been meeting with Kretinsky's advisors this week, and while some sources said they remain "wary" of him, the Communication Workers Union (CWU) said meetings with the EP Group have been "constructive".

The deal will still have to be approved under the National Security and Investment Act although officials stepped in with a similar review when he increased his stake in the company.

Kretinsky's EP Group declined to comment to the BBC.

The entrepreneur has already offered the following guarantees in a bid to secure the deal. He has pledged to maintain the "one price goes anywhere" universal service and not to raid the pension surplus.

He has also said he will keep the brand name and Royal Mail's headquarters and tax residency in the UK for the next five years and respect union demands for no compulsory redundancies to take place until 2025.

In addition, he has promised to negotiate with the CWU to extend that commitment on jobs.

The board of Royal Mail owner, International Distribution Services (IDS), has recommended the £3.6bn offer price to its shareholders and it is expected sufficient numbers of them will accept, allowing the deal to go ahead.

The BBC said it is thought additional safeguards may include extending the duration of the guarantees he has offered.

According to the BBC, they have been sufficient to satisfy the UK government that Kretinsky is a suitable owner for this historic and important organisation.

Speaking in front of MPs on Tuesday, Business Secretary Jonathan Reynolds referred to him as a "legitimate business figure" whose alleged links to Russia had already been reviewed and dismissed when he became the biggest shareholder in the company.

A spokesperson for the CWU told the BBC its meetings so far with the EP Group have been "honest and constructive and are set to continue in the coming days."