Czech billionaire closes in on deal to buy Royal Mail

The merchantability of Royal Mail to Czech billionaire Daniel Kretinsky's EP Group is adjacent to being finalised and could beryllium confirmed successful the adjacent 2 weeks, according to sources adjacent to the deal.

Kretinsky has agreed to marque other concessions successful bid to clinch the takeover, the BBC understands.

Unions person been gathering with Kretinsky’s advisors this week, and portion immoderate sources accidental they stay "wary" of him, the Communication Workers Union (CWU) said meetings with the EP Group person been "constructive".

The woody volition inactive person to beryllium approved nether the National Security and Investment Act though officials carried retired a akin reappraisal erstwhile helium accrued his involvement successful the company.

The entrepreneur has already offered the pursuing guarantees successful a bid to unafraid the deal:

• Maintaining a one-price-goes-anywhere "universal service", which means it has to present letters six days per week, Monday to Saturday, and parcels Monday to Friday
• Not to raid the pension surplus
• Keeping the marque sanction and Royal Mail's office and taxation residency successful the UK for the adjacent 5 years
• Respecting national demands for nary compulsory redundancies to instrumentality spot (until 2025)

It is thought further safeguards whitethorn see extending the duration of the guarantees helium has offered.

The BBC understands they person been capable to fulfill the UK authorities that Daniel Kretinsky is simply a suitable proprietor for this historical and important organisation.

Speaking successful beforehand of MPs connected Tuesday, Business Secretary Jonathan Reynolds referred to him arsenic a "legitimate concern figure" whose alleged links to Russia had already been reviewed and dismissed erstwhile helium became the biggest shareholder successful the company.

A spokesperson for the CWU said its meetings truthful acold with the EP Group person been "honest and constructive and are acceptable to proceed successful the coming days."

The committee of Royal Mail owner, International Distribution Services (IDS), has recommended the £3.6bn connection terms to its shareholders and it is expected capable numbers of them volition accept, allowing the woody to spell ahead.

Royal Mail, which was divided from the Post Office and privatised a decennary ago, has seen its show deteriorate successful caller years, starring to dense fiscal losses.

Customers person besides complained astir deliveries, with important aesculapian appointments and ineligible documents not delivered connected time.

The measurement of letters being posted successful the UK has plummeted too, with fractional the fig being sent compared to 2011 levels.

Meanwhile, parcel deliveries person go much fashionable - and much profitable.

Parent institution IDS made a tiny nett past twelvemonth which was wholly generated by its German and Canadian logistics and parcels business, off-setting losses astatine Royal Mail.

The cosmopolitan work work is presently nether review, with Royal Mail suggesting to the regulator Ofcom that reducing second-class deliveries to each different weekday would prevention up to £300m a twelvemonth and springiness the concern "a warring chance".

In an interrogation with the BBC earlier this year, Kretinsky said arsenic "as agelong arsenic I americium alive" helium would honour the cosmopolitan work work – but was successful favour of the Royal Mail’s suggested reforms.

Mr Kretinsky's EP Group declined to comment. The Department for Business has besides been contacted for comment.