Royal Mail sale to Czech billionaire gets national security clearance
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Royal Mail’s sale to Czech billionaire Daniel Kretinsky has taken another step towards completion, after it got the green light on national security grounds. Pat McFadden, the chancellor of the Duchy of Lancaster, approved the deal under the National Security and Investment act.
The Cabinet Office said it means the deal is approved as long as EP Group “remains able to and continues to provide services that are in support of UK national security”. It comes after business secretary Jonathan Reynolds confirmed on Monday that the Government had secured a raft of agreements from Mr Kretinsky over the postal service.
They include protecting the one-price-goes-anywhere delivery commitment and a pledge to keep Royal Mail headquartered in the UK. The approval earlier in December paved the way for the more than 500-year-old postal service to pass into foreign ownership for the first time.
Mr Kretinsky and International Distribution Services agreed to a deal worth £3.6 billion – or £5.3 billion including debt – in May. Since then, they were waiting for approval from the Government, which must sanction the takeover given the national importance of the postal service.
Mr Kretinsky – nicknamed the Czech sphinx – has since made several further concessions to gain approval. They include giving the Government a “golden share” in the postal service, meaning it will need to approve any key changes to Royal Mail’s ownership, headquarters location and tax residency.
