Coalition plans Royal Mail part-privatisation

The new UK coalition government has announced it will look to part-privatise Royal Mail. The plans were outlined in the ‘The Coalition: our programme for government’, a document put together by the Conservatives and Liberal Democrats, since an agreement to form a stable government between the two parties was reached last week.

Former business secretary Lord Mandelson ditched privatisation plans on behalf on the outgoing Labour government last year – citing that it was too hard to obtain a worthwhile deal whilst the world was gripped by recession.

The new government said it will seek “an injection of private capital” into the company, but did not state how much of Royal Mail was up for grabs.

The announcement came on the same day Royal Mail announced that Group profits had increased by 26%.

More to follow…