House of Commons · Written Ministerial Statement
Statement by the Parliamentary Under-Secretary of State for Employment Rights, Competition and Markets
16 December 2024 · Department for Business and Trade
Proposed by Justin Madders Lab Ellesmere Port and Bromborough
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- Government has secured a 'Golden Share' in Royal Mail from EP Group, preventing certain actions without government permission.
- EP Group has made financial commitments to strengthen Royal Mail's financial sustainability.
- Commitments include performance targets that must be met before any value extraction can occur.
Issue summary
The statement addresses the proposed takeover of Royal Mail by EP Group and the legally binding undertakings given to secure its long-term financial sustainability.
Action requested
The government has secured significant commitments from EP Group, including a 'Golden Share' that prevents certain actions without government's permission. Additionally, there are financial commitments to strengthen Royal Mail’s finances and ensure it meets performance targets before value extraction can occur.
Key facts
- The takeover bid is still ongoing and subject to regulatory processes.
- In 2023-24, Royal Mail recorded an operating loss of £348 million and faced a £5.6 million fine for failing to meet quality service targets.
- EP Group has committed to issuing the Department for Business and Trade with a 'Golden Share' in Royal Mail.
- The Golden Share will remain in place permanently, including future changes in ownership.
- There are financial commitments to guard against value extraction and strengthen Royal Mail’s finances.
- EP Group must ensure Royal Mail can afford transformation and meet specific performance targets before extracting value.