Months after ministers said they would launch a national security probe into Royal Mail's parent company, the group today confirmed there would be no further action. International Distributions Services (IDS), which changed its name from Royal Mail Group earlier this year, had faced potential intervention after the firm’s largest shareholder, Vesa, increased its stake to just over 22%.
Vesa is controlled by Czech billionaire Daniel Kretinsky, who also owns stakes in West Ham United FC and Sainsbury’s. In August, the business secretary at the time, Kwasi Kwarteng, had contacted the company to say he suspected arrangements were in progress, or being contemplated, which would increase Vesa’s stake to more than 25%.
Mr Kwarteng had said he was “exercising his call-in power under Section 1 of the NSI (National Security and Investment) Act”. The recent legislation gives the Government powers to investigate deals that “will result in an acquisition that may give rise to a risk to national security”.
