Fears over stamp prices as Royal Mail sale looks set to be approved in next two weeks

The Czech billionaire bidding for Royal Mail could win ministers’ approval for the deal in the next two weeks, raising fears about further rises in stamp prices.

Daniel Kretinsky, who came forward with a £3.6bn bid, agreed to additional concessions for the deal to be approved. But it is feared that these will not cover the prices of the stamps, leaving him free to place them.

The price of a first-class stamp has increased five-fold in three years and is now £1.65.

The deal is being examined under the National Security and Investment Act, which gives ministers the power to block foreign acquisitions if they believe they pose a risk to UK security.

The billionaire’s advisers also met with the Communication Workers Union, which represents about 100,000 civil servants.

The talks have been “constructive”, although union bosses say they remain “cautious” about the tycoon’s ambitions, the BBC reported.

Kretinsky, who controls almost 28 per cent of Royal Mail parent company IDS, has agreed to maintain the post’s universal service obligation, which requires it to deliver letters six days a week.

Other commitments include not touching the Royal Mail pension scheme surplus.

It was reported that the new guarantees could last longer than previously agreed. Business Secretary Jonathan Reynolds appeared to shrug off fears about Kretinsky, telling MPs he was a “legitimate business figure”.