European and US regulators approve the sale of Royal Mail owner IDS for £3.6 billion

The sale of Royal Mail cleared another hurdle last night after European and US regulators approved a £3.6 billion takeover.

International Distribution Services (IDS), which owns the postal service, said the deal has been approved by the European Commission and the US Committee on Foreign Investment.

British regulators have already given the controversial takeover of the 500-year-old postal company the green light on national security grounds.

And ministers and unions have also backed Czech billionaire Daniel Kretinsky’s bid after securing beefed-up commitments including giving the government a so-called golden share of the government.

It sent shockwaves through the City and Westminster when the IDS board accepted the energy magnate’s offer in May last year.

The deal will see Royal Mail fall into overseas hands for the first time since the postal service was founded by Henry VIII in 1516.

The offer still needs to clear foreign direct investment regulations in Romania and EU subsidy rules.

Meanwhile, the Postal Service is also seeking a major shake-up of its services, which could see it scrap Saturday deliveries for second-class letters.

Royal Mail must deliver letters to all 32 million addresses in Britain six days a week, for the price of a postage stamp.

But the company has argued that its obligations have become unsustainable as the number of letters sent has fallen.