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Royal Mail faces historic takeover by Czech billionaire

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THE ROYAL MAIL a cornerstone of British postal services for over 500 years, is poised for a historic change of ownership. The board of its parent company, International Distribution Services (IDS), has agreed to a formal takeover offer from Czech billionaire Daniel Křetínský. The £5 billion deal includes the assumption of existing debts.

Křetínský, who has expressed his “utmost respect” for the Royal Mail’s history and tradition, has committed to maintaining the company’s name, brand, UK headquarters, and tax residency. He has also vowed to safeguard employee benefits and pensions.

Despite these assurances, the deal will be subject to scrutiny under the National Security and Investment Act. Business Secretary Kemi Badenoch retains the power to examine and potentially block the takeover. The market reflects some scepticism, with Royal Mail’s shares trading below the 370p per share offered by Křetínský, indicating concerns over possible government intervention.

Chancellor Jeremy Hunt has indicated that the bid will undergo “normal” national security scrutiny but stated there is no opposition to the deal in principle. Shadow Business Secretary Jonathan Reynolds has stressed the importance of Royal Mail’s role in the UK and outlined conditions he believes Křetínský’s offer should meet.

In his latest update, Křetínský acknowledged the “enormous responsibility” of owning Royal Mail, highlighting his commitment to the company’s employees and the public who rely on its services. He detailed a series of commitments, including maintaining the universal service obligation, which mandates six-day letter deliveries and five-day parcel deliveries across the UK.

Royal Mail has faced significant challenges in recent years, with declining letter volumes and financial losses. IDS reported a small profit last year, solely due to its German and Canadian logistics businesses. In response, Royal Mail has suggested service reductions, such as cutting second class deliveries to every other weekday, to save up to £300 million annually.

The proposed takeover includes several protections, such as preserving the universal service, retaining the Royal Mail brand, and respecting union demands against compulsory redundancies until 2025. Keith Williams, IDS chair, stated that the board had secured a “far-reaching package of legally binding undertakings and commitments,” deeming Křetínský’s offer “fair and reasonable.”

Dave Ward, general secretary of the Communication Workers Union (CWU), has called for “more extensive assurance” regarding the future of the UK postal service. The CWU plans to engage with Labour and other stakeholders to advocate for a new ownership model that gives postal workers a say in key decisions.

The IDS board’s approval marks the beginning of a process that will include a shareholder vote at the next annual general meeting in September. The Department for Business and Trade expects any prospective buyer to engage with government officials.

Who is Daniel Křetínský?

Daniel Křetínský, 48, is a Czech businessman and lawyer with a net worth of £6 billion. He made his fortune in the Central and Eastern European energy sector and has diversified his investments into retail and logistics. His portfolio includes significant stakes in Sainsbury’s, Footlocker, and West Ham United, among others.

Known as the “quiet sphinx” for his discreet style, Křetínský owns luxurious properties in London and Paris and a share of the Velaa private island resort in the Maldives. His business interests in the UK are managed through Vesa Equity Investment, registered in Luxembourg.

The potential acquisition of Royal Mail by Křetínský represents a significant shift in the ownership of one of the UK’s most historic institutions. The coming months will reveal whether this deal will proceed and how it will impact the future of postal services in Britain.

For ongoing coverage and updates on this developing story, stay tuned to The Pembrokeshire Herald.

 

Business

Port backs next generation of seafarers with expanded cadetship support

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STUDENTS training for careers at sea in Pembrokeshire are set to benefit from enhanced practical learning after fresh backing from the Port of Milford Haven.

Learners on the Marine Engineering Pre-Cadetship at Pembrokeshire College will now receive additional hands-on maritime training, funded by the Port, alongside their classroom studies.

Launched in 2023, the enhanced programme is aimed at young people hoping to enter the maritime, deck and engineering sectors. It combines technical teaching with industry-focused skills to help students prepare for work at sea.

For the past three years, the Port has covered the cost of uniforms to encourage professionalism and team spirit among cadets. This year, its support has been widened to include a series of accredited practical courses delivered through the Royal Yachting Association.

These include radar operations, first aid training for mariners, navigation and seamanship, and professional practices and responsibilities — qualifications designed to give students recognised safety and operational skills before entering the industry.

Brian Stewart, Assistant Harbourmaster at the Port of Milford Haven, said the training provides valuable real-world preparation.

He said: “The Pre-Cadetship training at Pembrokeshire College gives students a real insight into life in the maritime, deck and engineering sectors, while building key qualities such as discipline and teamwork. It’s great to see these enhanced practical opportunities being offered this year, which will provide students with invaluable experience and a clearer pathway into our diverse industry.”

Tim Berry, maritime lecturer in the college’s Faculty of Engineering and Computing, said the extra funding would make a “tangible difference” to learners.

He added: “These RYA-accredited practical courses allow the Pre-Cadets to translate classroom theory into real maritime skills, building their confidence and readiness for a career at sea. We’re incredibly proud of the opportunities this partnership continues to create for the next generation of marine engineers.”

The Port, one of the county’s largest employers, has increasingly worked with local education providers to encourage young people into maritime and energy-related careers, helping retain skills and opportunities within Pembrokeshire.

More information about the Marine Engineering Pre-Cadetship is available at pembrokeshire.ac.uk.

Cover photo:

Pre-Cadetship students with lecturer Tim Berry and Port of Milford Haven representatives Brian Stewart and Emily Jones (Pic supplied).

 

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Langdon Mill Farm Pembrokeshire expansion signed off

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THE FINAL sign-off for plans for a heifer accommodation building and associated works at one of Pembrokeshire’s largest dairy farms, with a milking herd of 2,000 cows, have been given the go-ahead.

In an application backed by councillors at the December meeting of Pembrokeshire County Council’s planning committee, Hugh James of Langdon Mill Farms Ltd sought permission for a 160-metre-long heifer accommodation building, a slurry separation/dewatering building and associated yard areas at 1,215-hectare Langdon Mill Farm, near Jeffreyston, Kilgetty.

A supporting statement through agent Reading Agricultural Consultants said: “The holding currently has a milking herd of approximately 2,000 cows, which are housed indoors for the majority of the year, with dry cows and heifers grazed outdoors when weather and soil conditions permit.

“There has been significant investment in buildings and infrastructure at the farm over the last decade in respect of cattle accommodation, slurry storage, milking facilities, Anaerobic Digestion (AD) plant, feed storage. Recently a calf and weaned calf accommodation buildings were approved by Pembrokeshire County Council with construction almost complete.

“The unit is efficient, achieving yields of more than 10,000 litres/cow/year, with cows being milked three times/day in the 60-point rotary parlour. Langdon Mill Farm currently directly employs 21 full-time, and three part-time staff.  Of these, four live on site in the two dwellings opposite the farm, with the remaining staff living in the locality.”

It added: “Although the unit has previously purchased heifers to aid expansion, the farm now breeds most of its own replacements to improve genetics and to minimise the ongoing threat of bovine tuberculosis (bTB).”

It said the proposed building would be used by heifers between the ages of 7-22 months, the siting  “directly influenced by the adjacent calf and weaned calf buildings, with livestock being moved from one building to the next as they get older”.

Members unanimously supported the recommendation of approval, giving delegated powers to the interim head of planning to approve the application following the final approval of a habitats regulations assessment.

An officer report published yesterday, February 5, said Natural Resources Wales confirmed it had received the assessment, and, “in consideration of the mitigation measures detailed and on the understanding there is no increase in stock, they agree with the LPA’s conclusion that an adverse effect upon the integrity of the SAC [Special Areas of Conservation] sites can be ruled out”.

Formal delegated approval has now been granted by officers.

 

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Report into Wales SME finance paints mixed picture as barriers remain

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A NEW report by the British Business Bank and Economic Intelligence Wales shows that while most Welsh SMEs remain financially stable, many continue to face barriers to accessing finance and are less likely than their counterparts in other devolved nations to seek funding for future growth.

The Wales SME Access to Finance Report 2026 has found that 66% of Welsh SMEs are currently using external finance, and eight in ten (80%) report a positive cash flow position. Despite this, 19% of smaller Welsh businesses reported experiencing barriers to accessing finance, the highest proportion among the devolved nations.

The report also highlights a more cautious outlook among Welsh SMEs when it comes to future investment. Just 17% of Welsh businesses expect to require additional finance over the next year, compared with 42% in Northern Ireland and 47% in Scotland. While 62% of Welsh SMEs that anticipate needing finance say they are confident about securing it, overall demand for funding remains lower than elsewhere in the UK.

Regional variations within Wales are also evident. SMEs based in North Wales and South West Wales were more likely to report barriers to finance (both 21%), while South West Wales businesses were least likely to feel confident about securing additional funding. At the same time, SMEs in South East Wales were most likely to report a finance requirement above £250,000, reflecting differing growth profiles across regions.

Giles Thorley, Chief Executive, Development Bank of Wales; Susan Nightingale, Director, Devolved Nations – UK Network, British Business Bank; Irvine Mwiti, Economist, British Business Bank 

The findings underline the importance of a diverse and accessible finance ecosystem to support business investment, innovation and growth across all parts of Wales.

Susan Nightingale, Director UK Network, British Business Bank, said: “Welsh businesses continue to show resilience and confidence, with most reporting positive cash flow and steady growth expectations. Yet, clear regional and structural differences remain in access to finance, particularly for smaller businesses and sole traders. With Wales recording the highest share of smaller businesses experiencing barriers to finance among the devolved nations, it is vital that all businesses, wherever they are in the country, have the knowledge, confidence and support to secure the right finance for them. This will be key to unlocking sustainable growth across every part of Wales.”

Giles Thorley, Chief Executive of the Development Bank of Wales, said: “This year’s Wales SME Access to Finance Report shows a mixed picture. It’s encouraging to see many Welsh SMEs reporting strong cash flow, yet concerning that confidence and demand continue to lag behind other UK nations. If we want our businesses to innovate, invest and grow, closing that gap must remain a priority.

“Improving access to finance isn’t something any one organisation can solve alone, but the Development Bank of Wales will continue to play a vital role in supporting SMEs, working alongside partners across the wider finance ecosystem to help businesses invest, innovate and grow.”

Economic Intelligence Wales is a unique research collaboration between the Development Bank of Wales, Cardiff Business School, Bangor Business School, the Enterprise Research Centre, and the Office for National Statistics (ONS).

 

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