Telegraph takeover by Abu Dhabi-backed fund set for in-depth review, says Frazer
The Culture Secretary has said she is “minded to” refer the gulf-state backed takeover of the Telegraph newspaper group for an in-depth investigation amid free speech concerns.
Last year, Abu Dhabi-backed fund RedBird IMI reached a deal with previous Telegraph owners, the Barclay family, to take control of the newspaper group, and fellow publication The Spectator, by paying off debts owed to their bank, Lloyds.
On Tuesday, Lucy Frazer said industry regulator Ofcom has raised concerns the UAE-linked group involved “may have the incentive to influence Telegraph Media Group in a way that could potentially act against the public interest in the UK”.
As a result, she said the proposed buyers will need to address concerns in the next week or face a more thorough phase 2 investigation.
RedBird IMI is an investment fund majority-owned by Sheikh Mansour bin Zayed Al Nahyan, vice president of the United Arab Emirates (UAE) and owner of Manchester City Football Club.
The deal for the Telegraph Media Group would also see the fund take control of fellow publication, The Spectator.
Shortly after the deal was first announced, Ms Frazer confirmed the Government had triggered a Public Interest Intervention Notice (PIIN) to investigate its potential impact on press freedom.
In January, the Culture Secretary was forced to launch a fresh intervention after the proposed owner announced a new corporate structure for its takeover
She called on regulator Ofcom and the Competition and Market Authority (CMA) to probe the move and come back with findings for a deadline last week.
In a written statement, the Culture Secretary said Ofcom raised concerns IMI, the Abu-Dhabi based majority owner of RedBird IMI, could influence “the accurate presentation of news and free expression of opinion in the Daily Telegraph and the Sunday Telegraph newspapers” if the takeover goes ahead.
However, the CMA found in the initial review that the deal is not expected to result in a “substantial lessening of competition”.
Ms Frazer said she will publish the reports from both regulators “in due course”.
Nevertheless, the deal is also at risk after a minister said last week that foreign governments will be banned from owning UK newspapers and magazines.
In the face of cross-party pressure and a threatened defeat in the House of Lords, the Government said it would bring forward an amendment to the Digital Markets, Competition and Consumers Bill that would block such deals.
