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Royal Mail takeover to face national security checks, says Hunt

Published 17/05/2024, 11:20
Royal Mail takeover to face national security checks, says Hunt
IDSI
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Proactive Investors - Royal Mail (LON:IDSI)'s takeover will be analysed from a national security standpoint should shareholders accept the offer, chancellor Jeremy Hunt said.

Czech billionaire Daniel Kretinsky is closing in on acquiring the postal service's parent company for £3.5 billion after his improved offer was met favourably by management.

"We welcome international investment in British companies... one of the reasons that we have attracted more foreign direct investment than anywhere else in the world than the United States and China is because of our openness to companies from overseas," Hunt said.

He added that it was not only the cash being brought into the UK that was welcomed but also the "expertise and funding".

"We will continue with that approach," he added.

"But we do always look at national security considerations and make sure that in terms of our core infrastructure there are no risks to those going forward and any bid for Royal Mail would go through that normal process."

On Thursday, reports said the British government was not expected to intervene should the Royal Mail owner agree to a sale.

However, the government may be able to block the deal under the National Security and Investment Act, which a Whitehall representative said was being monitored “very closely”.

Read more on Proactive Investors UK

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