Daily Mail owner strikes £500m deal to buy Telegraph titles

The owner of the Daily Mail has struck a £500m deal to buy the Telegraph titles, in a move that will create a right-leaning publishing powerhouse. Lord Rothermere’s Daily Mail & General Trust (DMGT) has entered a period of exclusivity with RedBird IMI, which has been seeking a buyer since being forced to put the papers up for sale last spring, to complete the terms of the transaction. The two parties say they expect this process to “happen quickly”, however the deal is likely to trigger an in-depth investigation by the media regulator Ofcom and the Competition and Markets Authority (CMA). The creation of a large rightwing media organisation will spark concerns in Labour ranks, at a time when Reform UK is riding a wave of popularity against the government. “It is almost impossible to overstate the feelings of fear and hostility the Telegraph and Mail incite in many Labour politicians – including senior members of the government,” said a former Labour adviser close to No 10. “They have jointly been responsible for numerous stories and sustained campaigns that have ended cabinet careers.” DMGT, which owns a stable of titles including Metro, the i Paper and New Scientist, already handles the advertising contract for the Telegraph titles. Analysts have suggested that DMGT could sell the i Paper and Metro to reduce its overall scale in the newspaper market to try to allay competition concerns. “DMGT is confident any regulatory processes can be concluded swiftly and positively, as the case for approving the acquisition is compelling,” the company said. The move comes barely a week after RedBird Capital, the US group led by Gerry Cardinale, pulled out of its own £500m deal to buy the titles. Lord Rothermere has long coveted taking control of the Telegraph titles and had been in line to take a stake of about 10% as part of the aborted RedBird Capital consortium deal. “I have long admired the Daily Telegraph,” said Rothermere. “My family and I have an enduring love of newspapers and for the journalists who make them. The Daily Telegraph is Britain’s largest and best quality broadsheet newspaper and I have grown up respecting it. It has a remarkable history and has played a vital role in shaping Britain’s national debate over many decades.” DMGT said that the Mail and Telegraph editorial teams will remain separate and editorially independent, with investment provided to pursue the titles’ goal of becoming a global brand. DMGT said the deal would give “much-needed certainty” to Telegraph staff, who have been stuck in limbo over a sale process that has dragged on for more than two years. “DMGT and RedBird IMI have worked swiftly to reach the agreement announced today, which will shortly be submitted to the secretary of state,” said a spokesperson for RedBird IMI. The culture secretary, Lisa Nandy, will review any deal for the Daily Mail owner DMGT to buy the Telegraph newspaper. A spokesperson for the Department for Culture, Media and Sport said: “The secretary of state notes the announcement of a prospective new deal. She will review any new buyer acquiring the Telegraph in line with the public interest and foreign state influence media mergers regimes set out in legislation.” Related: Peers call for independent body to take control of Telegraph sale RedBird Capital, the junior partner in the RedBird IMI consortium, had stepped in after the government introduced rules banning foreign states from owning UK newspapers. IMI is controlled by Abu Dhabi’s Sheikh Mansour bin Zayed al-Nahyan, the vice-president of the United Arab Emirates and the owner of Manchester City FC. Two years ago DMGT had been in talks with Qatari investors about backing a bid for the Telegraph group, but later decided against the initiative. Earlier this year the government changed the law to allow foreign states and investors to hold a maximum of a 15% stake in UK newspapers. DMGT said that this deal will comply with the new foreign state influence (FSI) regime “as there will be no foreign state investment or capital in the funding structure”.