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The UK government has approved the £3.6 billion takeover of Royal Mail's parent company by Czech billionaire Daniel Kretinsky's EP Group, following agreement on legally binding commitments. The government will retain a so-called "golden share" that will require it to approve any major changes to Royal Mail's ownership, HQ location and tax residency.
EP Group will also have to maintain the one-price-goes-anywhere Universal Service Obligation (USO), which currently means it has to deliver letters six days per week, Monday to Saturday, and parcels Monday to Friday.
The company has committed to maintaining the USO for as long as it owns Royal Mail.
Earlier this year, Mr Kretinsky said he would honour the service - in whatever form it takes - "for as long as I am alive".
The USO is currently under review, with Royal Mail suggesting to regulator Ofcom that reducing second class deliveries to every other weekday would save up to £300m a year and give the business "a fighting chance".
The takeover of Royal Mail's parent company, International Distribution Services (IDS), is expected to be completed early next year.
The conditions agreed by EP Group include keeping the brand name and Royal Mail's headquarters and tax residency in the UK for the next five years.
It has also reached an agreement in principle with unions that include workers getting a 10% share of any dividends paid out to Mr Kretinsky, as well as the formation of a workers group that will meet monthly with the directors of Royal Mail to give employees a bigger voice on how it is run.
Dave Ward, the general secretary of the CWU union, said it was an "extensive agreement" and the deal was the "best opportunity" to save the future of Royal Mail.
However, he added that the union had "not agreed anything" on USO reform and there was "a long way to go" before that happened.
Royal Mail, which was split from the Post Office and privatised a decade ago, has seen its performance deteriorate in recent years, leading to heavy financial losses.
Last week, Royal Mail was fined £10.5m by the regulator Ofcom for failing to meet delivery targets for first and second class mail.
