Government To Take No Further Action Under The National Security And Investment Act (2021) On Royal Mail Share Acquisition

1st November 2022

The government has yesterday (Monday 31 October) decided to take no further action under its national security powers on the proposed increase in shareholdings by Vesa Equity Investment in Royal Mail.

The proposed acquisition of increased shareholdings in Royal Mail by Vesa Equity Investment was called in for a full national security assessment by the previous Business Secretary on 25 August 2022.

International Distributions Services is the new name for Royal Mail.


The government has powers under the National Security and Investment Act (2021) to scrutinise and, if necessary, intervene in qualifying acquisitions on national security grounds.

Following careful consideration, the government will take no further action on the acquisition of increased shareholdings by Vesa Equity Investment in Royal Mail and a Final Notification has been issued to parties.

The government will not hesitate to act to prevent risks to the UK's national security where we judge action is necessary.  Under the National Security and Investment Act (2021) acquisitions are assessed on a case-by-case basis, so any future acquisition could be subject to a separate assessment under the Act if deemed necessary.

Billionaire Daniel Kretinsky, nicknamed the Czech Sphinx in the City, told authorities in August that his vehicle Vesa Equity Investment, which already owns 22 per cent of Royal Mail, was planning to raise its stake above 25 per cent.

International Distributions Services shares rose 6.7 per cent to 206.8p in morning trading on Monday, making the company the biggest riser on the FTSE 250.