Daily Mail owner agrees to buy Daily Telegraph for £500m

The publisher of the Daily Mail has agreed to buy the Daily and Sunday Telegraph for £500m.

The Daily Mail and General Trust (DMGT) said it had entered a period of discussion with RedBird IMI, which is a joint venture between the United Arab Emirates and the US private equity firm RedBird Capital Partners.

RedBird Capital’s own bid for control of the Telegraph collapsed last week amid continuing concerns over potential foreign state influence.

The deal needs to be signed off by Culture Secretary Lisa Nandy. A spokesperson said Nandy would “review any new buyer acquiring the Telegraph in line with the public interest and foreign state influence media mergers regimes”.

DMGT and RedBird IMI have said they expect the deal to be finalised “quickly”.

DMGT chairman Lord Rothermere said he had “long admired the Daily Telegraph” and the deal would give “much-needed certainty and confidence” to its employees.

He added: “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.

“Under our ownership, the Daily Telegraph will become a global brand, just as the Daily Mail has.”

The purchase would see the Telegraph become part of DMGT’s portfolio of media organisations, which includes the i Paper, Metro and New Scientist, along with the Daily and Sunday Mail papers.

The group said the Telegraph would remain editorially independent from DMGT’s other titles.

It also said its case for having the deal approved was “compelling” and would comply with UK regulations, as there would be no foreign state investment or capital in the funding structure.