Czech billionaire Daniel Kretinsky has recently met with new business secretary Jonathan Reynolds to discuss his plans for the full acquisition of Royal Mail, one of Britain’s most significant companies. This meeting, which took place last Tuesday, marks the first time the two have met since the Labour party’s victory in the recent general election.
In a statement made several days prior, Mr. Reynolds expressed his belief that it was reasonable to expect the government to further scrutinize the proposed takeover of International Distribution Services (IDS). Sources familiar with the meeting have revealed that it was a productive and amicable discussion.
Kretinsky, who also holds a stake in West Ham United Football Club, has also taken steps to reassure Royal Mail employees about his intentions for the company. He has made a commitment to uphold the Universal Service Obligation (USO) indefinitely, ensuring that six-days-a-week delivery will continue.
The board of IDS has been advocating for a reduction in the USO, arguing that it is a financial burden on the company. Ofcom, the industry regulator, is currently consulting on potential reforms to the universal service, with recommendations expected later this year. Kretinsky has been a shareholder in IDS, which also operates Parcelforce, for several years.
Last week, Kretinsky also met with trade union leaders to discuss his bid for IDS. When approached for comment, a spokesman for Kretinsky declined to do so, while the Department for Business and Trade also refrained from providing a statement.
In other business news, Evri has announced plans to hire 9,000 new staff, and the Chancellor is set to reveal cuts aimed at addressing a reported £20 billion deficit. Additionally, former Formula One boss Bernie Ecclestone is currently embroiled in a legal battle with HSBC.
