A British organisation over 500 years old is about to be taken over by a non-British billionaire, as campaign groups and authorities fight for government intervention.
Royal Mail Takeover
The Royal Mail, a British entity for over 500 years, is set to be purchased by a non-British billionaire.
Royal Mail to Be Acquired by Czech Billionaire
Royal Mail’s parent company, International Distribution Services (IDS), is set to be acquired by Czech billionaire.
EP Group Takes Over
The deal, worth £3.57 billion, will make EP Group the majority stakeholder in the organisation that has been part of British identity for five centuries.
Czech Businessman Sweeps Majority
The billionaire in question is Daniel Kretinky, a Czech businessman whose company, EP Group, already held a 27.6% stake in the Royal Mail.
Business Secretary’s Warning
Business Secretary Kemi Badenoch suggested that she would not allow the takeover without guarantees in place to protect the postal service.
Rural Residents at Risk
Badenoch is concerned that the business would no longer protect those living in rural, remote areas, especially vulnerable, elderly people.
Campaign Voices Urge Government to Take Action
A campaign group for the elderly, Silver Voices, issued concerns about the takeover, urging the government to step in and block the sale.
Concerns of Foreign Ownership
A spokesperson for Silver Voices, Dennis Reed, argued that there are “huge” security concerns with a billionaire from a foreign country taking over a British entity.
Huge Security Concerns
“My concern is that a basic important part of the infrastructure of the UK is potentially going to be owned by a billionaire from another country,” said Reed.
Elderly Dependence on Royal Mail
Reed also displayed concerns about whether the Royal Mail would continue to serve older people who depend on the service.
“It Must Be Blocked, for Goodness’ Sake”
‘A lot of older people, the NHS and businesses depend on the universal coverage of Royal Mail. The Government should step in and stop it. It must be blocked, for goodness’ sake – it’s the Royal Mail,” he urged.
Potential Government Intervention
The sale is currently being assessed by the government and may be blocked under the National Security and Investment Act.
IDS Pushes for Sale
Royal Mail’s parent company, the IDS, has recommended the sale should take place and argued that the company would continue its universal service.
Changes to Staff
In regards to worries about what will happen to the staff, the IDS insisted that no redundancies would be made and staff would continue as normal.
No Redundancy Promise
IDS said there is “no intention to make any material changes to overall headcount or reductions in the number of front-line workers.”
Kretinksy Can Handle the Pressure
Kretinsky himself, who also owns a stake in London club West Ham United, has insisted he understands the pressure on his shoulders with such a high-profile sale.
Kretinsky to Respect British Tradition
Kretinsky insisted that there was a history and tradition behind the Royal Mail that he promised to respect as he goes through with the purchase.
Kretinsky Has “Utmost Respect” for Royal Mail
Kretinsky said he has “the utmost respect for Royal Mail’s history and tradition, and I know that owning this business will come with enormous responsibility – not just to the employees but to the citizens who rely on its services every day”.
Fighting for Government Intervention
Despite Kretinsky’s comments and the beliefs of IDS, many still fight for government intervention to block the sale.
The post Urgent Appeal: Government Asked to Block Royal Mail’s Foreign Takeover first appeared on Now Buzz.
Featured Image Credit: Shutterstock / Bil Hinton.