Royal Mail’s takeover by Czech billionaire Daniel Kretinsky is facing a national security probe, according to reports last night.
PA reported that the Cabinet Office was reviewing the offer under the National Security and Investment (NSI) Act, which gives the government the power to block a deal or ask for specific commitments from the suitor if the review raises major concerns.
According to the report, the investigation would also look at Kretinsky’s other interests including his gas pipeline interests in Russia.
It will be the second investigation into Kretzinsky by a UK body after the last government cleared him to build up a substantial stake in International Distributions Services PLC (LSE:IDS), the owner of Royal Mail.
IDS agreed to a takeover by Kretinsky's EP Group in May, with guarantees it would maintain its UK base, staff rights and also keep deliveries six days a week.
Neither EP nor the Cabinet Office would comment on the review underway, though unions welcomed the prospect of the Cabinet Office investigation.
It is expected to take around two months to complete.
Shares in IDS were little changed at 346p against the offer price of 370p.