Royal Mail's parent company has agreed to a £3.6 billion ($4.6 billion) takeover by Czech billionaire Daniel Kretinsky. The deal comes after Kretinsky's EP Group submitted an improved offer for International Distribution Services (IDS).

IDS chairman Keith Williams announced the decision, calling the offer from EP Group "fair and reasonable." EP Group already owns 27.6% of IDS, but the takeover still requires approval from shareholders and regulators.

Royal Mail, originally a state monopoly before its privatization in 2013, has struggled as the shift to online communication has reduced its core letter delivery business. However, its parcel delivery services have benefited from this change.

Earlier this year, Ofcom, the UK's communications regulator, suggested that Royal Mail could reduce deliveries to five or even three days a week. This move could save the company hundreds of millions of pounds.

IDS has been advocating for changes to the universal service obligation (USO), which requires it to deliver letters six days a week to all 32 million addresses in the UK for the price of a stamp.

EP Group believes IDS has a strong foundation and the potential to become a leading postal logistics company in Europe, provided there are updates to the USO. Kretinsky expressed his respect for Royal Mail's long history and acknowledged the significant responsibility of maintaining a service relied upon by millions.

Big Decisions Ahead: What to Expect from the European Parliament Election

Meet Keir Starmer: Former Human Rights Lawyer Vying for Britain's Top Job

Russia-Ukraine War: Key Events and Developments on Day 823