Daily Mail owner DMGT says it has struck an Stg500 million ($A1 billion) deal to buy rival newspaper the Telegraph in a tie-up that would create one of the most powerful right-leaning media groups in Britain.
The deal comes a week after US-based private investment firm RedBird Capital Partners withdrew its bid for the Daily Telegraph, one of Britain’s biggest newspapers.
Daily Mail and General Trust (DMGT) agreed to purchase the Telegraph from RedBird IMI after an attempted purchase by the Abu Dhabi-backed RedBird Capital Partners investment firm was blocked by the then Conservative government.
People close to the talks said the transaction was worth about Stg500 million ($A1 billion).
The parties have entered a period of exclusivity to finalise the terms of the transaction and to prepare the necessary regulatory submissions, which they expect to happen quickly.
The Telegraph did not immediately respond to Reuters’ request for comment.
A spokesman for RedBird IMI said: “DMGT and RedBird IMI have worked swiftly to reach the agreement announced today, which will shortly be submitted to the Secretary of State.”
DMGT chairman Lord Rothermere said he had long admired the Daily Telegraph, which is known online as the Telegraph.
“The Daily Telegraph is Britain’s largest and best quality broadsheet newspaper and I have grown up respecting it,” he said.
“It has a remarkable history and has played a vital role in shaping Britain’s national debate over many decades.”
Lord Rothermere said under DMGT ownership the newspaper would become a global brand like the Daily Mail.
The purchase would see the Telegraph become part of DMGT’s stable of media organisations, which also includes Metro, The I Paper and New Scientist.
The media group says it will “invest substantially” in the Telegraph, accelerating its international expansion with a particular focus on the US.
A Department for Culture, Media and Sport spokesperson said the Secretary of State noted the announcement of the 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,” the spokesperson said.
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