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Proactive Investors – Chancellor of the Exchequer Jeremy Hunt said the promises made by Daniel Kretinsky not to break up Royal Mail (LON:) could be extended by the government.
After his £3.6 billion takeover offer for International Distributions Services PLC was accepted this week, ‘Czech Sphinx’ Kretinsky’s EP Group has offered legally binding undertakings to not sell off the more profitable GLS parcels arm and leave the struggling UK letters business behind.
Kretinsky guaranteed to keep the group together for three years, which led to the thought that Royal Mail would be broken up after that time passes.
Speaking on LBC radio this morning, Hunt said this pledge should be examined by regulators “very carefully” but added that “three years is a very long time”.
He said it was “entirely possible, we will decide that we should extend it beyond that”.
Hunt said he did not have a problem with overseas companies taking over UK institutions, saying “for our economy to modernise, we need to attract investment from all over the world”.
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