The deal values the company at £5.28 billion, including debt, and would see EP Group acquire IDS for 370p per share.

EP Group, which already owns a 27.6% stake in IDS, has committed to protecting public service aspects of Royal Mail, such as its universal service obligation for first-class post. The company also plans to retain Royal Mail’s branding, UK headquarters, and workforce, with no intentions for material changes to headcount or reductions in front-line workers.

The takeover is subject to shareholder approval at IDS’s annual general meeting in September and is expected to face scrutiny from regulators. Unions and politicians have previously voiced concerns about the potential impact on the postal service, which was privatised in 2013.

The Communication Workers Union has welcomed some commitments made by EP Group but called for a “complete reset” in employee and industrial relations, as well as the restoration of postal services.