Home / Royal Mail / Royal Mail edges closer to foreign takeover as Business Secretary appears to shrug off concerns

Royal Mail edges closer to foreign takeover as Business Secretary appears to shrug off concerns

The Business Secretary appeared to shrug off concerns about the looming takeover of Royal Mail by a Czech energy tycoon.

Jonathan Reynolds told MPs that billionaire Daniel Kretinsky, who swooped on Royal Mail with a £3.6billion bid earlier this year, was a ‘legitimate business figure’.

The takeover offer is being scrutinised by the Government under the National Security and Investment Act, which gives ministers the power to block foreign takeovers if they believe they pose a risk to UK security.

But Reynolds said Kretinsky, who already controls nearly 28 per cent of Royal Mail’s parent company IDS, had ‘already been through’ a national security assessment when he expanded his holding in the group.

Business Secretary Jonathan Reynolds told MPs that billionaire Daniel Kretinsky (pictured), who swooped on Royal Mail with a £3.6bn bid, was a ‘legitimate business figure’

He also acknowledged growing pressure from Royal Mail for reform of the universal service obligation (USO), a legal requirement for the group to deliver letters across the UK six days a week at a single price. 

The firm has previously warned that the USO is costing it millions every day.

While he acknowledged that some form of USO was ‘essential’, Reynolds appeared to accept the case for an overhaul. 

He said: ‘I think we are all aware of the fundamental decline in letters. So I am pragmatic about the future.’

DIY INVESTING PLATFORMS

Easy investing and ready-made portfolios

AJ Bell

Easy investing and ready-made portfolios

AJ Bell

Easy investing and ready-made portfolios

Free fund dealing and investment ideas

Hargreaves Lansdown

Free fund dealing and investment ideas

Hargreaves Lansdown

Free fund dealing and investment ideas

Flat-fee investing from £4.99 per month

interactive investor

Flat-fee investing from £4.99 per month

interactive investor

Flat-fee investing from £4.99 per month

Get £200 back in trading fees

Saxo

Get £200 back in trading fees

Saxo

Get £200 back in trading fees

Free dealing and no account fee

Trading 212

Free dealing and no account fee

Trading 212

Free dealing and no account fee

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.

Compare the best investing account for you




Source link

About admin

Check Also

Industrial action slows mail to and from Canada – The Royal Gazette

Created: Nov 26, 2024 05:01 PM General Post Office (File photograph) A Canadian postal strike …

Leave a Reply

Your email address will not be published. Required fields are marked *