What the sale of Royal Mail means for YOU – from a ‘one price anywhere’ service to days of delivery when the takeover is approved

Royal Mail will be taken over by Czech billionaire Daniel Kretinsky, leaving households wondering what the deal means for them.

Royal Mail is currently owned by International Distribution Services (IDS), and last night Labor ministers signed a £3.6bn takeover deal from Kretinsky.

The deal has been on the table since April to allow Kretinsky’s EP group to expand its 28 percent stake in IDS.

The acquisition would give Royal Mail its first non-British owner since its founding in the 16th century.

Here’s everything you need to know about how Royal Mail’s acquisition will affect its customers.

Will Royal Mail rebrand?

No. An express part of the agreement is that the Royal Mail brand does not change, at least for the next five years.

What could happen to stamp prices?

The price of stamps is not regulated by the agreement and is a decision for Royal Mail owners to make.

Currently, a first class stamp costs £1.65 and a second class stamp costs 85p. In 2013, a first class stamp cost 60p and a second class stamp 50p.

Will Royal Mail service levels change?

Royal Mail’s most famous promise – that it will charge a single price to send anything anywhere in the country – is being kept.

This is known as “one price goes anywhere”, in which first class letters are also delivered six days a week.

In theory, the overall service provided by Royal Mail must remain the same or improve under the agreement, or the new owners will not make any money.

The agreement states that “no value is extracted” unless Royal Mail has maintained or improved its performance compared to its 2023-24 performance.

Last week, Royal Mail was fined £10.5m by communications regulator Ofcom for failing to meet its first and second class mail delivery targets.

The postal service is legally required to deliver 93 percent of first-class mail within one business day after collection and 98.5 percent of second-class mail within three business days of collection.

But Ofcom fined Royal Mail after it only delivered 74.7 per cent of first class mail and 92.7 per cent of second class mail on time between April 2023 and March 2024.

When will the acquisition take place?

The agreement is not yet completely final, as it still needs to be approved by shareholders and unions, and may also be investigated by the Competition and Markets Authority.

Current IDS shareholders must decide whether they want to sell their shares or not.

EP Group needs to obtain 75 percent of IDS to close the deal.

But the Government has said it has no objections to the deal, which could be completed as early as the first quarter of 2025.

What will happen to Royal Mail staff?

Royal Mail will continue to be based in Great Britain, ensuring jobs are secure and taxes will be paid in the UK.

EG Group has said that all agreements made with postal unions will be respected and that they will not withdraw any surplus cash from the Royal Mail pension scheme.