'Setback for Barclay family?': UK government to probe proposed Telegraph takeover by UAE-backed consortium

In what comes as a blow to the proposed takeover of the Telegraph newspaper by a consortium backed by the UAE, the British government on Thursday (Nov 30) saidit had triggered a formal probe, citing public interest grounds.

UK Culture Secretary Lucy Frazer wrote a letter to the Barclay family that owns Telegraph Media Group (TMG) and RedBird IMI - the company set to take over the media house, stating that she was issuing aPublic Interest Intervention Notice (PIIN) in relation to the deal.

"This relates to concerns I have that there may be public interest considerations... that are relevant to the anticipated acquisition of TMG by RedBird IMI and that these concerns warrant further investigation," Frazer wrote.

Add WION as a Preferred Source

The in-depth inquiry will be conducted by Ofcom - a media regulator, to ascertain if the complex deal could impede the accurate presentation of news, free expression of opinion and sufficient plurality of views.

Meanwhile, the Competition and Markets Authority (CMA) will look into any competition issues and if the new entity could pose a problem to the established journalistic setup in the country.

Both Ofcom and CMA have been given time until January 26, 2024, to prepare a report and present it to the government.

Since the announcement of the deal, there has been a major furore within the journalism and political circles. The Tories have expressed apprehensions over the deal saying“influence over a quality national newspaper being passed to a foreign ruler at any time should raise concerns [and] must be investigated”.

Watch |UK MPs warn against UAE takeover of Telegraph, to review proposed sale of Telegraph Media Group

The face behind the deal

Notabbly. RedBird IMI is a joint venture between the US company RedBird Capital and International Media Investments (IMI) of Abu Dhabi, the investment vehicle for Sheikh Mansour bin Zayed Al Nahyan.

Sheikh Mansour is a known face in the UK. He bought Premier League club Manchester City in 2008, transforming the mid-table club into treble winners.

However, the club is currently under investigation for breaching Financial Fair Play (FFP) rules among other charges. According to reports, the club breached 115 regulations since the start of the 2009-10 season.

Hence, there has been a degree of uneasiness among the higher echelons of British bureaucracy over the proposed deal. If the takeover goes through, UAE will have control ofThe Daily and Sunday Telegraph sister newspapers and The Spectator magazine.

(With inputs from agencies)