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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

Tŷ Hafan celebrates opening of larger new shop in Cardigan

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Long-serving supporters Diane and Emily Lloyd cut the ribbon as the children’s hospice charity begins a new chapter in the town

TY HAFAN has officially opened its newly relocated charity shop in the centre of Cardigan, marking the latest chapter in its long-standing relationship with the town and surrounding communities.

Diane Lloyd and her daughter Emily, both dedicated supporters of Tŷ Hafan Children’s Hospice, cut the ceremonial ribbon at the new premises at 25 High Street on Friday, July 10.

Diane has worked for the charity for 22 years, while Emily has volunteered for Tŷ Hafan for the past 11 years.

The charity currently supports 22 families caring for children and young people with life-shortening conditions in the Ceredigion Penfro Senedd constituency. A further 17 families continue to receive bereavement support.

Maree Thomas, regional sales manager for Tŷ Hafan, thanked the community, volunteers and businesses that helped make the relocation possible.

She said: “I’d like to thank everyone who joined us on this exciting occasion as we opened our newly relocated Cardigan Tŷ Hafan store.

“We’ve been present on this high street for over 30 years, with the first few years spent in a tiny cabin and the last 22 years in the smaller shop just down the road.

“None of this would have been possible without the wonderful Lloyd family and other local supporters, who were among the first fundraisers for Tŷ Hafan.”

She also thanked the shop’s volunteers, landlord Andrew, local companies, donors, customers and supporters who helped with the move.

“Your support means that we can walk alongside every family that needs us,” she said.

“Our shops play an important part in raising funds and awareness of the hospice. Right now, we are only supporting one in ten families who have a child whose life will be short.

“Our ambition is that when a child’s life will be short, no family should have to live it on their own.”

During the past year, the Cardigan community has contributed around 3,000 volunteer hours, donated 2,000 bags of goods and purchased approximately 3,000 items from the charity.

The move to larger premises will allow the shop to display and sell more donated goods, helping to raise additional funds for hospice care.

Shop manager Diane said: “I would like to thank the local community for its massive support over the past 30 years, right from when we started in a little cabin in the market to our lovely new shop on the High Street.

“I’d also like to thank my absolutely amazing volunteers. Some have been with me for more than ten years and some have been here since the shop opened. Without them, we simply could not do what we do.”

Emily said volunteering had given her the opportunity to help families while also being part of a friendly and welcoming team.

She said: “I love volunteering for Tŷ Hafan. It’s great fun, it keeps me busy and you know you’re making a difference for local families with children who have life-shortening conditions.

“We’re always looking for more volunteers, so anyone who would like to join us can email [email protected] or call 02920 532255.”

Musician Mark Watkin Price also performed during the opening celebrations, singing and playing guitar for visitors and supporters.

The new shop is expected to begin trading seven days a week and includes a dedicated donation drop-off area at the rear of the premises.

 

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Call to expand nature retreat with more lodges, a sauna and padel courts

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A CALL to extend a Pembrokeshire “boutique nature retreat destination” previously featured in the Sunday Times with further holiday cabins, a mobile sauna and padel courts has been lodged with county planners.

In an application submitted to Pembrokeshire County Council, Paul Cleaver of Wilder Retreats, through agent Hayston Developments & Planning Ltd, seeks permission for two holiday cabins, a mobile sauna and the conversion and extension of an existing building to padel courts and changing rooms to form phase 2 of the existing Wilder Retreats holiday cabins and complex, on land at the former agricultural/ forestry works depot, Solbury Road, Tiers Cross.

Padel is a racquet sport that combines elements of tennis and squash.

A supporting statement said of Wilder Retreats, an ecotourism destination located on 20 acres of rewilded land: “Since opening, the business has established itself as one of Wales’ leading boutique nature retreat destinations — demonstrating how sensitive, high-quality tourism development can work in harmony with landscape, ecology and local economy.

“The business has attracted national press coverage from publications including the Sunday Times and Coast Magazine.”

It said the existing business “was conceived from the outset as an ecotourism model — one that funds and enables genuine environmental restoration through sustainable commercial activity, working towards ecological targets set by Kite Ecology including native woodland planting, wildflower meadow creation and habitat corridor development”.

The Phase 2 developments proposed are: two additional A-frame cabins in addition to the existing six; Wilder Woodland Sauna, a commercial woodland sauna; and Wilder Padel Club, two covered LTA (Lawn Tennis Association) compliant padel courts with associated clubhouse facilities, that re-uses a redundant shed and yard in the client’s ownership.

The two additional A-frame cabins will be operated by Wilder Retreats Ltd as an extension of the existing accommodation business. Wilder Woodland Sauna and Wilder Padel Club will each operate as independent businesses under separate limited companies.

“Together, the three proposals reinforce one another: the cabins bring more guests to the site; the sauna and padel give those guests — and local residents — more reasons to visit and to stay longer,” the statement says, adding: “All three operate independently but collectively strengthen the economic, social and environmental case for this site as a model of sustainable rural tourism.”

The site was previously lawfully occupied by the applicant’s tree works consultancy and land management business until this subsequently relocated a few years ago.

Although the site has since been occupied by a motorcycle business, that business has been given notice to vacate but will trade until early 2027.

The application proposal is supported by a letter from Tennis Wales, the national governing body for Padel, one of the fastest growing sports in the country, which fully supports the principle of creating two padel courts, saying: “Creating more Padel courts, which can be used throughout the year, is critical to sustaining this growth.

“These new facilities will enable more adults and juniors to enjoy, compete and experience the game of Padel in line with Tennis Wales Vision and Mission which is to see ‘Padel opened up’.”

The application will be considered by county planners at a later date.

 

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Plans for new development agency for Wales: A “key driver” or “just another quango”?

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A NEW development agency will “improve productivity”, according to a Welsh Government minister – but opponents have dubbed it “yet another quango”. 

Enterprise, connectivity, and energy minister Adam Price outlined his plans in the Senedd on Tuesday July 7.

He said: “Less than three weeks into this administration, we announced the most ambitious economic goal in Wales in two decades; namely, halving Wales’s productivity gap with the UK within ten years.

“If we are going to meet that challenge, we need a fundamental change in how we approach economic development in Wales. The proposed new agency will be a key driver in achieving that change.”

Mr Price previously faced criticism on his plans when he raised the proposal in the Senedd last month.

Reform’s shadow minister for economy and transport, Jason O’Connell, then described the idea of a new agency as “another unnecessary bureaucratic quango”.

Speaking in the Siambr, Mr Price said: “Creating a new development agency is a crucial part of driving the positive changes in productivity that we need. But it needs to be a much wider, collective effort across Wales.

“We need – collectively and collaboratively – to look at the current landscape and work with local and regional partners to create an economic development system where roles are clear and we’re all working together as one team for the people of Wales.” 

As set out in Plaid’s 100 day plan, the party will be establishing an “expert panel” to advise the development of the new agency, which he confirmed will be chaired by Jonathan Lewis.

He said: “The appointment of the chair of the panel to advise on the remit and operating model of the new agency is a key stepping stone in the journey towards making Wales the best place in the United Kingdom to start a business, to grow a business, and to invest in a business.”

The minister told colleagues he would confirm the full membership of the panel in the coming weeks.

Jason O’Connell, Reform’s shadow minister for economy and transport
Jason O’Connell, Reform’s shadow minister for economy and transport

Reform’s Jason O’Connell told the Siambr that it was a “shame” MSs were once again debating “the creation of yet another quango”.

Noting the importance of scrutiny for “better government”, Mr O’Connell accused Plaid Cymru of denying the chamber that scrutiny. 

He said: “If taxpayers are funding this new development agency, then they deserve transparency. Minister, you say you want the new agency to provide support, advice and guidance, but you’ve said nothing about how.

“So, let me give you a suggestion. Decades ago, Welsh Labour scrapped the Welsh Development Agency, WDA1. They promised a simpler, better support mechanism for Welsh businesses. But instead, we’ve got a patchwork of organisations: Business Wales for advice, the Development Bank of Wales for finance, and now what we’re proposing is WDA2 to sit on top. The current system is too confusing.”

Reform’s shadow economy minister then claimed Business Wales returns £18 of economic value for every £1 that’s invested. He also questioned Mr Price on why he has no plans to bring Business Wales into the new WDA to make things “less confusing and more accessible”.

Responding, Mr Price said his government “absolutely” wants to make sure businesses can access a “streamlined level of support”.

Mr O’Connell also asked about attracting inward investment to Wales, noting the “real test” is whether that investment becomes “rooted across Welsh communities up and down the country”. 

He said: “In the last WDA, Wales welcomed major international employers, created thousands of jobs, and celebrated new investment, as short-lived as it was.

“But those companies moved production elsewhere when the government reduced the support. They took high-paying jobs with them, because their supply chains were never truly anchored in Wales, and it was easy to do so.”

The Pontypridd Cynon Merthyr MS drew attention to the Irish economy where “inward investors are expected to work with local suppliers, strengthen domestic supply chains, and create opportunities for already-established local businesses in that country to grow alongside them”.

Mr Price noted his agreement with the shadow minister on the need to be strategic about inward investment.

He said: “Foreign direct investment has a role in any economy, but we need to actually focus it on those areas that will be more embedded – through supply chains, as he suggests – in the Welsh economy that actually build on our existing and possible future strengths.”

Labour’s spokesperson for employment, equalities, and economic transformation, Shav Taj
Labour’s spokesperson for employment, equalities, and economic transformation, Shav Taj

Labour’s Shav Taj said her party shares Plaid Cymru’s ambition for a “new type of Wales, a reinvigorated Wales, a Wales that attracts more investment and ultimately creates good jobs”. 

The Labour spokesperson for economic transformation told the Siambr that what the people of Wales want to know is what “meaningful difference” these internal arrangements will make.

She also drew attention to the work of the previous Labour government in ensuring a strong economy for Wales, including setting up the Development Bank of Wales and hosting the Wales investment summit.

Ms Taj said it’s the “practical” questions that are important and pressed Mr Price on when the new agency will get staff, whether they will be new staff or shuffled from other departments, and how much the new agency will cost the Welsh public.

She also pushed for confirmation on the “constitutional status” of the agency, notably whether the Senedd will need to legislate “at some point” for it to get going.

Ms Taj added: “Ultimately, this is about jobs, jobs for the future, high-skilled jobs, and young people in Wales are really watching to see whether or not your government is going to do any better than we did.”

Mr Price responded: “They [development agencies] have played a central role in virtually anywhere that you can think about in the nations and regions that have closed an economic gap, and few of those nations or regions that have had one have got rid of them.

“We’re one of the few exceptions. There may be a reason for that, and I suggest it’s because they are an incredibly valuable tool.

“Do you need to get the design right? Absolutely. The right relationship in terms of how arm’s length it is from government but how close it is from a government – getting that right is absolutely important and it’s one of the key questions that we’ve already done a lot of thinking on, and we will continue as we go through the design process.”

Welsh Conservative MS Andrew RT Davies
Welsh Conservative MS Andrew RT Davies

Pen-y-Bont Bro Morgannwg MS, Andrew RT Davies, expressed the Conservatives support for “the principle” but said there was “too much blank space” around the new agency.

He asked Mr Price for a timeframe in which he expects to bring the organisation into existence, whether it be 12 months, two years, or by the end of this Senedd term

Mr Davies also questioned the cost and said: “I’m not going to ask you for every pound, shilling and pence, but can you give an indication on what your thinking is of the type of budget that you will make available to the organisation?”

He continued: “When we look at the old WDA, it had a complete offer, from building industrial sites, gaining the planning permission and promoting foreign direct investment.

“Does this organisation, in your mind, need to do all that, or will it be more specific in what it does about promoting Wales as a destination for inward investment? And when we look at the organisation, are we thinking of an organisation that will look like Natural Resources Wales with a remit letter, or will this be a unique organisation that hasn’t been seen in the Welsh public landscape before?” 

Mr Price confirmed the new agency will be a statutory body, and said he plans to bring forward legislation “fairly soon”.

He also noted the Welsh Government’s ambition for the new agency to be operational “as soon as possible”, but said he could not provide a specific date.

 

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