New Royal Mail owner's Russian ties to come under greater scrutiny
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The Royal Mail group is on its way to passing into foreign ownership, but the state will keep a "golden share" in the company. It means the government will have to approve any key changes to Royal Mail's ownership, the location of its headquarters and tax residency.
This is something the government does with companies that are seen as crucial to its security, including the weapons manufacturers BAE Systems and Rolls-Royce. In Royal Mail's case, it's the company's role in communications infrastructure that is of national importance.
Under the deal, the group has agreed to keep the Royal Mail's HQ and tax residency in the UK for at least five years. Read moreMany are mystified why a Czech billionaire wants to buy Royal Mail's ownerTankers carrying Russian gas face UK sanctions for first time.
It has also promised to maintain the universal service obligation for first-class post to be delivered anywhere in the country for a fixed price six days a week, while Mr Kretinsky is in control. Royal Mail takeover by Czech billionaire Daniel Kretinsky approved.
Royal Mail fined £10.5m after missing delivery targets. Budget fallout: Royal Mail owner warns on prices and jobs. However, it has been suggested that second-class post could be reduced to every other weekday. The government has also blocked Royal Mail from making dividend payments to its owners unless the company meets financial targets.
