Fact Check-Royal Mail was privatised in 2013, so UK government is not selling it

International Distribution Services

18/12/2024 17:26

By Reuters Fact Check
Britain’s government has approved the sale of postal service
company Royal Mail from one private firm to another, not
privatising it for the first time, contrary to online claims. 
     
Social media posts, published after the British government gave
the green light for Czech billionaire Daniel Kretinsky's EP
Group to take over Royal Mail owner International Distributions
Services (IDS) for 3.57 billion pounds ($4.5 billion), suggested
the postal service was passing from public to private hands. 
     
“Typical Labour! Now they are selling Royal Mail,” said one
Facebook post on Dec. 15.  
     
“Remember the furore from Labour when the Tories privatised
public utilities in the 80s?” said another post. “Well Labour
has just done the same with Royal Mail. 500 years of Royal Mail
now sold to a Czech. Hypocrites.” 
     
However, the Conservatives sold the government’s final shares in
Royal Mail in 2015. 
     
It was privatised in October 2013 and listed on the London Stock
Exchange, becoming a subsidiary of IDS. Kretinsky's takeover bid
for IDS was called in for government review in August 2024,
before being approved in December 2024. 
     
Justin Madders, UK minister for employment rights, competition
and markets, said in statement to the UK parliament on Dec. 16
that Kretinsky's EP Group had agreed to give the government a
“golden share” in Royal Mail. This, he added, meant it could
stop Royal Mail from shifting its headquarters abroad or moving
its tax residency. 
     
    “I want to be clear that this will not change any of the
government's role in the day-to-day running of the business;
Royal Mail remains a private entity,” Madders said.  
     
The Department for Business and Trade said in a statement that
the agreement would secure Royal Mail’s identity as an iconic
British institution whilst also allowing it to operate as a
fully private company without day-to-day government
interference.    
     
    A spokesperson for Royal Mail said in an email that it was a
publicly listed company and not owned by the UK government.  
     
    VERDICT  
     
    False. The current UK government has not privatised Royal
Mail, it has approved its takeover by another private entity.
Royal Mail was first privatised in 2013. 
     
This article was produced by the Reuters Fact Check team. Read
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