The 'Czech Sphinx' is just what the Royal Mail needs

Controversial as the deal may be, Daniel Kretinsky might be the only man with a realistic prospect of fixing the company, writes James Moore but he is still taking a significant risk

With the government finally approving his purchase of the Royal Mail, Daniel Kretínsky – the so-called “Czech Sphinx” – has landed his white whale. The billionaire investor agreed a deal to buy International Distribution Services (IDS) – the name of the holding company – back in May.

However, the process was complicated by the government’s decision to call it in on national security grounds. Because, while letter delivery is in long-term decline, the business is still seen as an important part of the nation’s communications infrastructure. Then there was the small matter of a general election being called while it was stuck in the weeds of Whitehall.

The concessions granted to get the controversial transaction back on track – controversial because this is a business that has been British-owned since its foundation back in the 17th century – are considerable. For a start, the British government will retain a golden share, meaning that any change in the group’s ownership, tax residency or HQ will require its agreement.

The European Union takes a dim view of these things – courts have argued that they impede the free movement of capital. But they’re back in fashion now, so that’s no longer an issue. It is fair to say that those seeking to use this as a justification for a Brexit that looks worse by the day are scraping the bottom of the barrel.