The owners of Royal Mail have agreed to a £3.6bn takeover bid by Czech billionaire Daniel Kretinsky.
The company’s parent firm International Distribution Services (IDS) said its board of directors had approved the deal after a formal offer was made earlier this month.
Mr Kretinsky’s EP Group already owns 27.6% of the business.
Shareholders will vote on the deal at IDS’s next annual general meeting in September.
It is also expected that the takeover will come under heavy scrutiny from regulators before it can go ahead.
The billionaire, who has been nicknamed the “Czech Sphinx”, reportedly due to his enigmatic nature and reluctance to speak in public, also owns parts of West Ham Football Club and Sainsbury’s.
The offer would see EP Group buy IDS for 370p per share, and also includes a series of “contractual commitments” to protect public service aspects of the Royal Mail.
Read more: Many are mystified why a Czech billionaire wants to buy Royal Mail’s owner
IDS said Royal Mail would continue its universal service obligation to “one-price-goes-anywhere” first class post six days a week under the terms of the deal, and would also keep the company’s branding and UK headquarters.
The company also insisted that the employment rights of all staff would be protected and that there was “no intention to make any material changes to overall headcount or reductions in the number of front-line workers”.
Unions and senior politicians have previously raised concerns about the potential takeover of the postal service, which was privatised in 2013.
The Labour Party previously called for a commitment for the Royal Mail to remain domiciled in the UK and keep paying tax here as part of any deal.
Reacting to the announcement on Wednesday, shadow business secretary Jonathan Reynolds said: “These assurances are welcome that Royal Mail will retain its British identity and safeguard its workforce with no compulsory redundancies.
“Labour in government will ensure these are adhered to.”
General secretary of the Communication Workers Union, Dave Ward, said: “We do welcome some of the commitments that have been made but the reality is postal workers across the UK have lost all faith in the senior management of Royal Mail and the service has been deliberately run down.
“We will meet with EP Group next week and call for a complete reset in employee and industrial relations, the restoration of postal services and further commitments on the future of the company.”
He added: “We will also be directly engaging with the Labour Party and other stakeholders to call for a new model of ownership for Royal Mail where our members and customers have a direct say in key decisions”.
Please use Chrome browser for a more accessible video player
From January: Royal Mail deliveries could plummet
It comes after the Royal Mail put forward proposed shake-up plans to Ofcom as part of turnaround efforts, including by cutting down on some deliveries.
The regulator also recently launched an investigation after the company said it delivered less than three-quarters of first-class post on time in the last year.
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the fullest version.
You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.