Greg Hands, a former UK trade minister, has been appointed as a strategic adviser to Daniel Kretinsky, the Czech billionaire who orchestrated the bold acquisition of Royal Mail’s parent company.

Hands, who lost his Chelsea and Fulham seat in the previous general election, previously served as the minister for trade policy in the last Conservative government and has held multiple roles, including positions in energy and as chief secretary to the Treasury.

In his new role with EP Group, the Prague-based conglomerate led by Kretinsky, Hands will provide insights on regulatory and market matters, with a particular emphasis on developments in the UK and Germany. He will be reporting directly to Kretinsky, often referred to as the “Czech sphinx” due to his enigmatic investment strategies.

In April, EP Group finalized its £3.6 billion acquisition of International Distribution Services (IDS), the London-listed parent company of Royal Mail, after reaching legally binding commitments with the Department for Business and Trade. The UK government continues to hold a so-called golden share in the company.

Kretinsky has channeled substantial funds from his energy investments into various sectors, including food, media, logistics, and sports, notably investing in J Sainsbury and West Ham United football club. Recently, EP Group expanded its reach in Germany by taking over and delisting the wholesaler Metro.

Kretinsky remarked: “Greg possesses exceptional skills for this position, including proficiency in German and Czech, along with a deep understanding of many of our markets.”

Hands stated: “I have a longstanding relationship with Daniel Kretinsky and recognize that EP Group excels in energy and infrastructure.” He consulted the advisory committee on business appointments, which oversees the external engagements of former ministers.

Hands first met Kretinsky in January 2023 for discussions about the investor’s influence in the UK market, and he reached out to Kretinsky again after the election in July.

The committee noted that the business department confirmed the government’s involvement in the acquisition of IDS occurred after Hands’ ministerial tenure. Moreover, they stated he made no policy, regulatory, or commercial decisions affecting EP Group during his term as trade policy minister. Thus, they concluded that the risk of his appointment being perceived as a reward for past decisions is minimal.

However, the committee has suggested several conditions for the appointment. They recommended that Hands must not utilize any classified information acquired during his ministerial service and for the next two years he should not engage in lobbying activities on behalf of EP Group. He is also advised against using his government and Whitehall contacts to provide unfair advantages to EP Group.

The committee highlighted that Hands emphasized his qualifications for this role are based on his language skills and his expertise in key sectors such as energy, logistics, and retail in Germany, rather than solely on his status as a former minister. He also studied Czech at university, which further supports his multilingual capabilities.