Business Secretary backs Kretinsky’s Royal Mail bid amid concerns

In a significant development concerning the future of Royal Mail, Business Secretary Jonathan Reynolds addressed MPs regarding the recent takeover bid from billionaire Daniel Kretinsky, who proposed a £3.6 billion acquisition. This bid has raised various national security concerns, prompting the Government to evaluate it under the National Security and Investment Act. This legislation grants ministers the authority to block foreign acquisitions if deemed a risk to UK security. Kretinsky, a Czech energy tycoon, already holds nearly 28 percent of Royal Mail's parent company, International Distribution Services (IDS), and has undergone a national security assessment during his previous investments. Reynolds emphasized the need for scrutiny while affirming Kretinsky’s status as a legitimate business figure. Meanwhile, Royal Mail is pushing for reform of the universal service obligation (USO), which mandates the delivery of letters across the UK six days a week at a single price. This requirement is seen as financially burdensome, with the firm claiming it incurs significant daily losses. While acknowledging the necessity of some form of USO, Reynolds hinted at the potential for reform. He noted a comprehensive decline in letter volumes, indicating a need for pragmatic considerations regarding the future of postal services in the UK.