Government clears Czech billionaire to increase his stake in Royal Mail

A Czech tycoon’s plans to increase his stake in Royal Mail have been cleared by the Government, the postal service company said today. 

Billionaire Daniel Kretinsky told authorities in August that his vehicle Vesa Equity Investment, which already owns 22 per cent of Royal Mail, was planning to raise its stake above 25 per cent.

Kwasi Kwarteng, who was Business Secretary at the time, said the tycoon’s move to increase his holding in Royal Mail would constitute a ‘trigger event’ under the National Security and Investment (NSI) Act and would launch a probe.

Today, International Distributions Services – the new name for Royal Mail – said that no more action would be taken. 

It told investors in a statement: ‘The Company has now been notified by the Secretary of State that no further action is to be taken under the NSI Act in relation to the potential increase by VESA of its shareholding in the Company to more than 25 per cent.’

Kretinsky built his fortune through infrastructure and power assets in central and Eastern Europe.  

Dubbed the ‘Czech Sphinx’ by the City, Kretinsky has invested in other British companies including supermarket chain Sainsbury’s, and also holds a 27 per cent stake in West Ham United. 

International Distributions Services shares rose 6.7 per cent to 206.8p in morning trading on Monday, making the company the biggest riser on the FTSE 250.

The share price surge comes as Royal Mail’s largest labour union withdrew its planned strike action in the next two weeks due to an apparent legal challenge by the company.

The Communications Workers Union said on Sunday it had withdrawn walkouts due on 2, 3, 4, 8, 9 and 10 November.

It added that strikes will resume on Saturday 12 November.

Royal Mail recently revealed plans to consult on up to 6,000 redundancies earlier this month, blaming the impact of strike action by its workers.