The United Kingdom has launched a fresh investigation into the proposed acquisition of the influential Telegraph newspaper by Abu Dhabi-backed RedBird IMI. This marks the second
intervention by the British government, occurring after RedBird IMI revised its deal to address concerns about potential foreign interference in one of the nation's oldest daily newspapers.
The government's decision to intervene is based on public interest grounds, with the Competition and Markets Authority (CMA) and media watchdog Ofcom tasked with examining whether RedBird IMI's modified deal would impact freedom of expression and accuracy.
Media Minister Lucy Frazer explained the intervention, stating, "This is further to information my department received this week that Redbird IMI have made changes to the corporate structure of the potential acquiring entities of the Telegraph Media Group, and this has created a new Relevant Merger Situation."
RedBird IMI made last-minute adjustments to its takeover of the Telegraph and its affiliated title, the Spectator, just days before the CMA and Ofcom were set to submit their review of the original deal.
The regulatory bodies are expected to present their report on the deal by March 11.
The company, supported by Emirati royal and Manchester City owner Sheikh Mansour bin Zayed Al Nahyan, clarified that the changes to the corporate structure aimed to emphasize its role as a passive investor with no management or editorial involvement in the titles.
Under the revised structure, a new English-registered company, in which RedBird IMI is a limited partner, will own the titles. The alteration drew criticism from Media Minister Lucy Frazer, who stated that it was not "conducive to the full and proper functioning of the process."
Despite the changes, the assets technically remain owned by the Barclay family, as RedBird IMI assisted in repaying the £1.2 billion ($1.5 billion) debt owed to Lloyds Bank, resolving a longstanding dispute. Photo by Attribution: Prime Minister's Office (GODL-India), Wikimedia commons.