Royal Mail takeover to be reviewed by parliamentary committee

Published 18/11/2024, 12:14
© Reuters.  Royal Mail takeover to be reviewed by parliamentary committee
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Proactive Investors - Royal Mail (LON:IDSI) bosses will questioned by MPs about the agreed takeover deal by Czech billionaire Daniel Kretinsky as the process is also checked to see if it falls foul of national security rules.

The newly formed Commons Business and Trade select committee will also question business secretary Jonathan Reynolds over the takeover of International Distribution Services PLC (LSE:IDS), the Times newspaper reported.

In May, the FTSE 250-listed group agreed the £3.57 billion takeover by the 'Czech sphinx' Kretinsky's EP Group.,

The deal has been called in by the UK government under the national security and investment (NSI) act, to assess whether the sale to IDS’s largest shareholder could affect the UK’s economic infrastructure or pose a security risk.

Reynolds previously indicated that officials would speak directly to Kretinsky about the deal and said in the summer election campaign that Labour would "ensure that any proposed takeover is robustly scrutinised".

Under the review, reports have suggested that officials will look into links to Russia, as Kretinsky also owns a stake in a major gas pipeline from Russia to Europe.

The government could block a deal or demand major tweaks or commitments as a result of the review.

While the process is normally expected to take up to two months, it was at the start of August when the reports of the launch of the review first emerged.

Read more on Proactive Investors UK

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