Business Secretary to Meet with Daniel Kretinsky Regarding Royal Mail Acquisition Deal
- UK Business Secretary Kemi Badenoch is scheduled to meet with Czech billionaire Daniel Kretinsky in relation to his bid for Royal Mail.
- Daniel Kretinsky has made a £3.7bn deal to acquire International Distribution Services, and discussions will be held regarding his intentions for Royal Mail.
- The meeting signifies a crucial stage in the potential acquisition process and could have significant implications for the UK postal service.
Business Secretary Kemi Badenoch is set to meet with Czech businessman Daniel Kretinsky regarding his £3.6bn bid for Royal Mail. Kretinsky, who is close to acquiring the historic company, has made commitments to preserve jobs and the UK-wide six-day service. He has also agreed not to split up Royal Mail's parent company for at least three years and to maintain the universal service obligation and the Royal Mail headquarters in the UK for five years. Chancellor Jeremy Hunt has called for a careful review of these commitments. Kretinsky, already a major shareholder in IDS, has met with the Communication Workers Union, with concerns raised about the adequacy and duration of EP Group's commitments. The deal will be voted on by IDS shareholders on September 25. The government has not raised objections to the takeover, but it will undergo a review under the National Security and Investment Act. Shares in IDS are trading below Kretinsky's bid price, indicating investor skepticism. Kretinsky has pledged to uphold the USO and engage with Ofcom for necessary reforms. Royal Mail was privatized in 2013, and the bid comes amidst stricter rules for ministerial activities during the election purdah period.