LONDON — On Monday, the British government granted approval for a significant takeover, marking a historic transition for the Royal Mail’s parent company to foreign ownership. The deal involves Czech billionaire Daniel Kretinsky’s EP Group purchasing International Distribution Services (IDS), Royal Mail’s parent company, for an estimated 3.6 billion pounds (approximately $4.6 billion). This move signifies the first time in the postal service’s 500-year history that it will be owned by foreign interests.

The announcement confirmed that Kretinsky and IDS, who reached an agreement back in May, had been waiting for the green light under national security regulations, a precaution due to the postal service’s integral role in the U.K. economy. The postal service is set to remain based in the U.K. as part of this agreement. Additionally, the British government will maintain a “golden share” in Royal Mail, granting it oversight capabilities for any major alterations regarding ownership, headquarters, and tax residency.

Business Secretary Jonathan Reynolds praised the agreement, describing it as a beneficial arrangement for the United Kingdom. “We have negotiated something that secures the long-term future of Royal Mail and provides the fresh start that we require,” he noted.

Established in the 1500s as a service dedicated to the monarchy and royal court, Royal Mail became a public postal service in the 1600s, thereby cementing its place as one of the country’s longstanding institutions. The company, which underwent privatization in 2013, has faced considerable challenges in recent years as the demand for traditional postal services has sharply declined.

Kretinsky, who has diverse business interests throughout Europe, including in the energy sector with Eurstream— which facilitates the transit of Russian gas across Ukraine, the Czech Republic, and Slovakia— already possesses a 27% stake in IDS. Moreover, he has made investments in prominent U.K. retail sectors, including a stake in major supermarket chain Sainsbury’s.

With the takeover proposal still pending a vote by shareholders, its completion is anticipated by early 2025, as Kretinsky’s firm aims to develop IDS into a formidable player in the European postal logistics sector.