Business Secretary to Meet with Czech Tycoon in Potential Royal Mail Takeover
Kemi Badenoch, the current Business Secretary, is set to meet with Czech tycoon Daniel Kretinsky next week to discuss his potential acquisition of Royal Mail. Kretinsky’s investment company, EP Group, recently struck a £3.6 billion deal with the board of International Distribution Services (IDS), which would make him the first foreign owner in the postal company’s 500-year history.
According to sources, the meeting between Badenoch and Kretinsky has been provisionally scheduled for the middle of next week. This development comes after investors have expressed concerns about the success of the bid, with IDS shares trading at a significant discount to Kretinsky’s offer of 370p per share.
Despite the government not raising any major objections to the takeover, it will still be subjected to a review under the National Security and Investment Act. Kretinsky has made several commitments in relation to the deal, including a promise to not break up IDS for at least three years. He has also pledged to work with Ofcom, the industry regulator, to implement the same universal service obligation (USO) reforms that Royal Mail has been pushing for in order to maintain their six-day-a-week delivery model.
Royal Mail was privatized in 2013 by the coalition government, with then Business Secretary Vince Cable overseeing the company’s stock exchange flotation. The potential takeover by Kretinsky comes at a sensitive time for the government, as tighter rules are in place for ministerial activities during the election purdah period.
Neither the Department for Business nor the EP Group have commented on the matter. For more updates on this story, follow Sky News live.
