Royal Mail edges nearer to international takeover as Business Secretary seems to shrug off considerations

The Business Secretary appeared to shrug off concerns about the looming takeover of Royal Mail by a Czech energy tycoon.

Jonathan Reynolds told MPs that billionaire Daniel Kretinsky, who swooped on Royal Mail with a £3.6billion bid earlier this year, was a ‘legitimate business figure’.

The takeover offer is being scrutinised by the Government under the National Security and Investment Act, which gives ministers the power to block foreign takeovers if they believe they pose a risk to UK security.

But Reynolds said Kretinsky, who already controls nearly 28 per cent of Royal Mail’s parent company IDS, had ‘already been through’ a national security assessment when he expanded his holding in the group.

Business Secretary Jonathan Reynolds told MPs that billionaire Daniel Kretinsky (pictured), who swooped on Royal Mail with a £3.6bn bid, was a ‘legitimate business figure’

He also acknowledged growing pressure from Royal Mail for reform of the universal service obligation (USO), a legal requirement for the group to deliver letters across the UK six days a week at a single price. 

The firm has previously warned that the USO is costing it millions every day.

While he acknowledged that some form of USO was ‘essential’, Reynolds appeared to accept the case for an overhaul. 

He said: ‘I think we are all aware of the fundamental decline in letters. So I am pragmatic about the future.’