UK Post Office wins EU okay for 640 mln pound state aid

BRUSSELS, March 19 (Reuters) - European Union regulators approved on Thursday a British proposal to grant 640 million pounds ($954 million) in aid to the UK Post Office ltd over the next three years for providing a wide range of public services across the whole of Britain.

The European Commission said the state support was in line with EU state aid rules. In addition to its postal services, the UK Post Office also handles social security payments, passport and car license application and public utility payment facilities.

The Commission said that the post office has and will continue to have the public service mission to carry out and maintain a set of public services over a larger network of post offices than would be commercially optimal.

"Today's decision will make sure that those UK citizens who live in more remote areas will also have access to a post office and the services it provides," European Competition Commissioner Margrethe Vestager said in a statement.

($1 = 0.6709 pounds) (Reporting by Foo Yun Chee; editing by Philip Blenkinsop)