Czech billionaire cleared to increase stake in troubled Royal Mail | Business

The uncertainty surrounding the future of Royal Mail has intensified after the government gave the green light for a Czech tycoon to increase his control over the postal group and as unions rejected a new pay offer.

Grant Shapps, the business secretary, notified Royal Mail that the government would take no further action under its national security powers over Vesa Equity Investment, its largest shareholder at 22 per cent, potentially lifting that to 25 per cent-plus.

Vesa, an investment vehicle based in Luxembourg, also owns 10 per cent of Sainsbury’s. It is controlled by Daniel Kretinsky, a secretive Czech billionaire who also owns a stake in West Ham football club.

The outcome of the government’s review under the National Security and Investment Act came