The Czech billionaire bidding for Royal Mail could win approval for the deal from ministers in the next two weeks – raising fears over further stamp price rises.
Daniel Kretinsky, who swooped with a £3.6billion offer, has agreed extra concessions for the deal to be waved through. But it is feared these will not cover stamp prices, leaving him free to put them up.
The price of a first-class stamp has risen five times in three years and is now £1.65.
The deal is being scrutinised under the National Security and Investment Act, which gives ministers the power to block foreign takeovers if they believe are a risk to UK security.
Hikes: The price of a first-class stamp has risen five times over the past three years and now stands at £1.65
The billionaire’s advisers have also met the Communication Workers Union, which represents around 100,000 posties.
Talks have been ‘constructive’ although union bosses say they remain ‘wary’ of the tycoon’s ambitions, the BBC reported.
Kretinsky, who controls nearly 28 per cent of Royal Mail’s parent company IDS, has agreed to maintain the post carrier’s universal service obligation, which requires it to deliver letters six days a week.
Other commitments include not touching the surplus in Royal Mail’s pension scheme.
It was reported that the new guarantees may last longer than previously agreed. Business Secretary Jonathan Reynolds appeared to shrug off fears about Kretinsky, telling MPs he was a ‘legitimate business figure’.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
***
Read more at DailyMail.co.uk