Table of Contents
The Business Secretary appeared to play down concerns over the impending takeover of Royal Mail by a Czech energy tycoon.
Jonathan Reynolds told MPs that billionaire Daniel Kretinsky, who swooped on Royal Mail with a £3.6bn bid earlier this year, was a “legitimate business figure”.
The takeover bid is being examined 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 almost 28 per cent of Royal Mail’s parent company IDS, had “already gone through” a national security assessment when he expanded his stake 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 to reform 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 company has previously warned that USO is costing it millions every day.
While acknowledging that some form of USO was “essential,” Reynolds appeared to accept the proposal for a review.
He said: ‘I think we are all aware of the fundamental decline of letters. That’s why I’m pragmatic about the future.’
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-to-use portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free Fund Trading and Investment Ideas
interactive inverter
interactive inverter
Fixed fee investing from £4.99 per month
sax
sax
Get £200 back in trading fees
Trade 212
Trade 212
Free trading and no account commission
Affiliate links: If you purchase a This is Money product you may earn a commission. These offers are chosen by our editorial team as we think they are worth highlighting. This does not affect our editorial independence.