A proposed merger of two of Britain’s biggest media groups is unlikely to be blocked by the regulator or the government minister.
The Daily Mail and General Trust (DMGT), Lord Rothermere’s privately owned publishing empire, is closing in on a £500 million deal to acquire Telegraph Media Group (TMG).
It follows the collapse of a consortium bid led by Redbird Capital Partners.
The latest offer would end more than two years of uncertainty about the future of the Telegraph titles and is expected to overcome competition worries largely because of the declining role of newspapers in the media sector.
It is possible that to ensure approval from Lisa Nandy, the Culture Secretary, and the Competition and Markets Authority (CMA), DMGT may offer to sell off the i paper or the free distribution Metro.
Claire Enders, the media analyst, said that there was a “strong chance” that the CMA would approve the deal, although the process could take a year.
The proposed deal came with a pledge from DMGT owner Lord Rothermere that he would invest in the titles and make a push into America. The Telegraph already outsources its advertising business to DMGT.
A statement from DMGT said the group “places great emphasis on the editorial independence of its titles, and the Daily Telegraph would remain editorially independent from other titles in the group”.
It added: “DMGT believes that the proposed acquisition would give much-needed certainty and confidence to TMG’s employees, and ensure that the Daily Telegraph’s exceptional journalism can flourish long into the future and on the world stage.”
It will bring and end to the uncertainty around TMG since it was put up for sale in 2023. Lloyds Bank seized the asset while chasing down debts from its owners, the Barclay family, who formerly owned the business along with The Scotsman titles.
TMG was acquired by RedBird IMI — a vehicle co-owned by an Abu Dhabi state fund, IMI, and US private equity firm RedBird – but the deal was blocked amid concerns over the potential for foreign state interference.
The latest proposed tie-up comes amid a wider restructuring of the media sector as more people consume news through online sources such as news websites and social media platforms, while the global advertising market is dominated by tech giants such as Google and Facebook owner Meta.
Reach, the owner of the Daily Mirror and Daily Record, acquired the Daily Express and Daily Star, uniting left wing and right wing titles in a tie-up that would have been unthinkable in the past.
Sky recently announced its interest in buying the television and streaming arm of ITV, while STV is making cutbacks in its newsroom to restore profitability.
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