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Royal Mail bidder Kretinsky holds talks with Reynolds over £3.6bn deal

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The Czech billionaire who wants to take full control of Royal Mail has held private talks with the new business secretary to reassure him about his plans for one of Britain’s most important companies.

Sky News has learnt that Daniel Kretinsky met Jonathan Reynolds last Tuesday for the first time since Labour won this month’s general election.

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Daniel Kretinsky. Pic: Reuters

Mr Reynolds said several days ago it was “reasonable” to expect the takeover of International Distribution Services (IDS) would be called in for further scrutiny by the government.

One source briefed on the meeting said it had been “cordial and constructive”.

The Czech tycoon, who also owns a stake in West Ham United Football Club, has sought to reassure Royal Mail staff about his intentions, adding that he would fulfil the Universal Service Obligation (USO) “forever”.

IDS’s board has been lobbying to water down the six-days-a-week delivery obligation that the USO imposes on the company, arguing that it is financially onerous.

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Ofcom, the industry regulator, is consulting on the future of the universal service, with recommended reforms expected later this year.

Mr Kretinsky has been a shareholder in IDS, which also owns Parcelforce, for years.

Last week, he also met trade union bosses to discuss his bid for IDS.

A spokesman for Mr Kretinsky declined to comment on the talks, while the Department for Business and Trade also declined to comment.

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