Czech Tycoon’s Royal Mail Takeover Bid Sparks Government Scrutiny and Talks with Business Secretary

Czech billionaire Daniel Kretinsky has engaged in productive discussions with Business Secretary Jonathan Reynolds regarding a potential £3.6 billion transaction, following the Labour Party's victory in the general election, according to sources from Sky News.

City editor @MarkKleinmanSky

Monday, July 29, 2024, 12:

The Czech tycoon aiming to acquire complete ownership of Royal Mail recently engaged in confidential discussions with the newly appointed business secretary, offering assurances regarding his intentions for this vital British firm.

Sky News has discovered that Daniel Kretinsky had his first meeting with Jonathan Reynolds last Tuesday, following Labour's victory in the recent general election.

Mr. Reynolds mentioned a few days back that it was "reasonable" to anticipate that the government would request a more detailed review of the acquisition of International Distribution Services (IDS).

An individual familiar with the discussion described it as "friendly and productive."

The business magnate from the Czech Republic, who holds an ownership position in West Ham United Football Club, has sought to alleviate concerns among Royal Mail employees regarding his plans, affirming his commitment to indefinitely uphold the Universal Service Obligation (USO).

The board of IDS has been actively advocating for a relaxation of the requirement mandated by the USO to deliver six days a week, claiming that it places a significant financial burden on the company.

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Ofcom, the regulatory body for the sector, is currently seeking input on potential changes to the universal service, with proposed amendments anticipated to be announced later in the year.

Mr. Kretinsky has held shares in IDS, the parent company of Parcelforce, for several years.

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Last week, he also held discussions with labor union leaders regarding his pursuit of IDS.

A representative for Mr. Kretinsky did not provide any comments regarding the discussions, and the Department for Business and Trade also chose not to comment.

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