A PYMNTS Company

Relief and restructuring aid for Royal Mail Group approved

By  |  March 22, 2012

The European Commission has approved the United Kingdom’s relief and restructuring aid for Royal Mail Group. The relief is for Royal Mail Group’s pension costs, which the Commission found was excessive compared to those of their competitors, as they are a holdover from the time when RMG held a legal monopoly.

The restructuring aid will go toward reducing Royal Mail Group’s debt by ₤1089 million (approximately €1311 million). The Commission approved the measure as complying with the 2004 EU Rescue and Restructuring Guidelines. Both the pension relief and the restructuring aid are to ensure that all postal operators are competitively balanced, as it assists RMG with its structural disadvantages.

Full content: EC Press Release

 

Related content: The State Aid Action Plan: A Bold Move or a Timid Step in the Right Direction? (Frederic Jenny, ESSEC Business School)