The UK's Culture Secretary, Lisa Nandy, is poised to consider launching a formal investigation into the proposed £500 million acquisition of the Telegraph newspapers by the owner of the Daily Mail. This follows the formal submission of a request to transfer ownership from the titles' current Abu Dhabi-backed holder.
Formal Request Triggers Ministerial Decision
RedBird IMI, the current owner, has formally notified the Department for Culture, Media and Sport of its intention to transfer its right-to-buy option to Lord Rothermere's Daily Mail & General Trust (DMGT). The move comes after DMGT secured an exclusive negotiating position last month and finalised a complex £500m funding package. This package reportedly combines cash, an existing overdraft, and a loan from NatWest bank.
RedBird IMI was compelled to sell the Telegraph Media Group titles last spring after the UK government introduced a ban on foreign state ownership of British newspapers. The fund had initially taken control of the publications in 2023 by repaying debts owed by the previous owners, the Barclay family, to Lloyds Bank.
Scrutiny Over Media Plurality and Competition
Lisa Nandy is now required to decide whether to issue a public interest intervention notice (PIIN). Triggering this notice would mandate regulators Ofcom and the Competition and Markets Authority (CMA) to examine the transaction. Their focus would be on potential threats to media plurality and competition within the UK's news landscape.
If approved, the deal would consolidate a significant portion of the UK's national newspaper market under the Rothermere ownership. The portfolio would include the Daily Telegraph, the Sunday Telegraph, the Daily Mail, the Mail on Sunday, Metro, the i newspaper, and the New Scientist magazine.
Analysts widely expect Nandy to trigger the initial phase of investigation, which can last up to 40 working days. Depending on the findings, she could then order a more in-depth, second-phase probe.
Deal Structure and Industry Reaction
As part of the agreed terms, RedBird IMI will wait two years to receive the final £100 million payment from DMGT. This final tranche is expected to be funded from a DMGT bond with Deutsche Bank that matures in 2027.
In a statement, a DMGT spokesperson emphasised their commitment to a swift resolution, stating the acquisition would be "completely free from any prohibited foreign state influence." They also pledged to maintain the Telegraph's editorial independence while investing to accelerate its international growth.
Independent media analyst Alice Enders suggested the deal has a "strong foundation for clearance" and may not require a prolonged second-phase investigation or forced sale of other titles. Should the deal ultimately be approved, Nandy would lift the existing government orders that currently prevent RedBird IMI from making major changes to the Telegraph's operations.
