International Distribution Services

Privatisation (2010–2014)

Following the 2010 general election, the coalition government decided to allow private investment into Royal Mail, as recommended in a report from Richard Hooper CBE, the former deputy chairman of Ofcom. Subsequently the Postal Services Act 2011 was passed, allowing for up to 90% of Royal Mail to be privatised, with at least 10% of shares to be held by Royal Mail employees.

In July 2013, Business Secretary Vince Cable announced that Royal Mail was to be floated on the London Stock Exchange, and confirmed that postal staff would be entitled to free shares. Cable explained his position before the House of Commons:

The government's decision on the sale is practical, it is logical, it is a commercial decision designed to put Royal Mail's future on a long-term sustainable business. It is consistent with developments elsewhere in Europe where privatised operators in Austria, Germany and Belgium produce profit margins far higher than the Royal Mail but have continued to provide high-quality and expanding services.

Royal Mail's chief executive Moya Greene publicly supported Cable, stating that the sale would provide staff with "a meaningful stake in the company", while the public would be able to "invest in a great British institution". On 12 September 2013, a six-week plan for the sale of at least half of the business was released to the public; the Communication Workers Union (CWU), representing over 100,000 Royal Mail employees, said that 96% of Royal Mail staff opposed the sell-off. A postal staff ballot in relation to a nationwide strike action was expected to take place in late September 2013.

A new holding company, Royal Mail Limited, was established on 6 September 2013, in anticipation of its initial public offering on the London Stock Exchange. Two weeks later the holding company was re-registered as Royal Mail plc.