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The sale of Royal Mail to Czech billionaire Daniel Katynsky has been approved by the UK government, paving the way for the former state-owned postal service provider to go under foreign ownership.

Proceeding for a £5.3bn takeover of Křetínský Royal Mail Owner International Distribution Services came out on Monday with a set of commitments from the company to the government and its staff.

Both parties had Agreed on a deal in May which had management support, but was awaiting an official green light.

Business Secretary Jonathan Reynolds said the agreement reflected the government's "commitment to working hand-in-hand with business" and that ministers were "working to ensure a financially stable Royal Mail".

IDS Chair Keith Williams on Monday welcomed "government support and legal backing for a comprehensive package of initiatives".

Křetínský's EP group was locked in late talks with officials and the postal workers' union as they sought more assurances about the transaction.

As part of the final deal, the UK government will retain a so-called "golden share" in the postal service and give it exclusive rights over the company's governance.

The government said the golden share, which would apply under any future owner of the company, would ensure that the Royal Mail headquarters could not be moved abroad and that it could not pay its taxes without the government's approval. cannot change The sanctions will apply "with very limited exceptions," it added.

The restrictions imposed by the Golden Share would not apply when "the tax imposed . . . would, according to officials, be unfair and inequitable.

Keretinsky's commitment includes "significant financial safeguards including confidence around financial investment", the government said. It also includes "restrictions on value extraction linked to the financial strength of the Royal Mail business and the achievement of specific service level standards", it added.

EP Group said it has also reached an agreement with the Communications Workers Union and the Communications Managers Association, subject to the unions finalizing internal approvals.

CWU general secretary Dave Ward said the agreement included paying workers a share of profits to invest in a collective trust. The union and Kretinsky's team have also agreed to meet regularly, "giving us a formal role in a capacity we've never had before", Ward added.

Ward said up to 11,000 part-time workers would have the option to become full-time, while employment conditions for 20,000 staff on minimum terms would be brought in line with the rest of the workforce.

Křetínský, known for his investments in UK supermarket chain J Sainsbury and football club West Ham United, has previously committed to honoring delivery obligations that Royal Mail has long warned would require it to provide better service. be prevented from doing

Earlier this month Fined by UK regulators Royal Mail £10.5 million after the group failed to deliver required letters on time, increasing pressure on the postal service.

Communications industry regulator Ofcom found that the group delivered only 74.7 per cent of first-class mail within one working day of collection, and 92.7 per cent of second-class post within three working days.

These levels are well below the target of 93 per cent and 98.5 per cent respectively.

The fine highlights the challenge facing Křetínský, who has pledged to modernize Royal Mail after strained relations with postal workers and struggles to adapt to the rise of online shopping.

Andrew Griffith, the Conservative shadow business secretary, said the service provided by Royal Mail had been "unacceptably poor" for too long. "Millions of Britons rely on Royal Mail for essential daily mail deliveries. . . . The Government must ensure ironclad protection for existing services including the Universal Service Obligation that we all rely on. .