Culture Secretary Lisa Nandy is considering whether to investigate the £500m takeover of the Telegraph titles by the owner of the Daily Mail, after receiving a formal request from the seller, Abu Dhabi-backed RedBird IMI. RedBird IMI, which was forced to put the titles up for sale after the government banned foreign state ownership of UK newspapers, has asked Nandy to approve the transfer of its right-to-buy option to Lord Rothermere's Daily Mail & General Trust (DMGT).
DMGT, which has been in exclusive talks with RedBird IMI since last month, has finalised a £500m funding package including cash, an existing overdraft and a loan from NatWest. As part of the deal, RedBird IMI will wait two years before receiving the final £100m, likely funded from a DMGT bond with Deutsche Bank maturing in 2027.
A DMGT spokesperson said the company is 'determined to proceed at pace towards a resolution that brings much-needed certainty to Telegraph Media Group employees'. The spokesperson added that the acquisition will be 'completely free from any prohibited foreign state influence' and that the Telegraph will remain editorially independent while benefiting from investment for international growth.
Nandy will inform parliament of the request and must decide whether to issue a public interest intervention notice (PIIN), triggering an investigation by Ofcom and the Competition and Markets Authority (CMA) into plurality and competition concerns. Analysts believe she will trigger a PIIN, which begins a process of up to 40 working days, potentially leading to an in-depth second-phase investigation.
If approved, Nandy would lift pre-emptive orders imposed by former Culture Secretary Lucy Frazer, which restricted changes to the Telegraph's structure, staff or management. Independent analyst Alice Enders said the deal 'will of course be scrutinised' but predicted clearance without a second phase or forced sale of other titles. DMGT said it would ensure the Telegraph 'remains a beacon of authoritative news and commentary'.
