Czech Billionaire's Russian Links Raise Concerns Over Royal Mail Purchase

The UK government has initiated a review of Czech billionaire Daniel Kretinsky's £3.57 billion takeover bid for the Royal Mail, reflecting a growing concern over national security implications. The Cabinet Office, in collaboration with the Department for Business and Trade, aims to scrutinize the offer for International Distribution Services (IDS), the parent company of Royal Mail. This decision comes despite previous government approval of Kretinsky's increased stake in IDS last year, highlighting the unique political sensitivities surrounding the national postal service. Kretinsky, who has emphasized that his operations do not involve Russian gas or dealings, faces skepticism due to his connections to a country with a historically fraught relationship with the UK. The government is particularly cautious, recalling past controversies, such as the sale of the National Lottery to a Czech firm. Prime Minister Rishi Sunak's administration has indicated a thorough examination of the national security aspects of the bid, although former Chancellor Jeremy Hunt previously suggested that ministers were not fundamentally opposed to the sale. In his bid, Kretinsky has pledged to maintain first-class deliveries six days a week and keep the Royal Mail headquarters in the UK for at least five years. His background as a lawyer and experience in finance and private equity through his company, EP Group, positions him as a significant player in the industry. However, the Royal Mail's operational challenges, including its large workforce and the Universal Service Obligation, may necessitate substantial changes to ensure the success of his investment.