Foreign bid for Royal Mail would face security review - Hunt

17th May 2024 10:06

(Sharecast News) - Any takeover bid for the Royal Mail owner International Distributions Services would be subject to routine national security scrutiny but it would not be opposed in principle, British Finance Minister Jeremy Hunt said on Friday.

IDS on Wednesday recommended a £3.5bn approach from its biggest shareholder Daniel Kretinsky should the Czech billionaire table a formal offer.

"As a rule, we welcome international investment in British companies," Hunt told reporters at an event.

"But we do always look at national security considerations to make sure that in terms of our core infrastructure, there are no risks to those going forward and any bid for Royal Mail will go through that normal process."

A planned purchase of the Telegraph newspaper - a vocal and staunch supporter of the ruling Conservative Party - by a UAE-backed consortium was sunk when the Tories swiftly brought in a new law blocking foreign states from owning newspaper assets in the UK.

Reporting by Frank Prenesti for Sharecast.com