Royal Mail's £3.6bn sale to Czech billionaire gets national security clearance
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The sale of Royal Mail to Czech tycoon Daniel Kretinsky has edged closer to completion after it was approved on national security grounds. Pat McFadden, chancellor of the Duchy of Lancaster, gave the deal the green light underthe National Security and Investment Act. The Cabinet Office announced that the deal is good to go as long as EP Group "remains able to and continues to provide services that are in support of UK national security".
This follows business secretary Jonathan Reynolds' confirmation on Monday that the Government has clinched several commitments from Mr Kretinsky regarding the postal service. These commitments include upholding the universal delivery service obligation and ensuring Royal Mail's headquarters stay put 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 shook hands on a £3.6bn deal – or £5.3bn including debt – back in May. Since then, they've waiting for the Government's go-ahead, which is crucial due to the postal service's national significance.
Mr Kretinsky, known as the 'Czech Sphinx', has made additional concessions to secure the deal. These include granting the Government a "golden share" in the postal service, which means it will have a say in any significant changes to Royal Mail’s ownership, location of headquarters, and tax residency.
