Competition watchdog and Ofcom deliver results of probe into Abu Dhabi-backed Telegraph bid to media secretary
Britain’s competition watchdog and Ofcom have delivered the results of their investigations into the ongoing takeover of the Telegraph Media Group (TMG) by Abu Dhabi-backed fund Redbird IMI to media secretary Lucy Frazer.
The Competition and Markets Authority (CMA) and the communications regulator have both reported on jurisdictional and competition matters to the secretary of state.
Ofcom said in a post on X: “We have provided our advice to the Secretary of State in accordance with the deadline she has set. Publication of our advice & any decision on how to proceed are matters for the Secretary of State.”
Update on public interest test related to the Telegraph Media Group:
— Ofcom (@Ofcom) March 11, 2024
We have provided our advice to the Secretary of State in accordance with the deadline she has set.
Publication of our advice & any decision on how to proceed are matters for the Secretary of State.
Frazer will now be able to make a decision on whether the deal risks a potential threat to press freedom and could harm public interest. She has the power to block the controversial bid.
Alex Haffner, a competition partner at Fladgate, said: “One can expect the Minister to look very closely at what the two regulators have told her about the level of risk to media plurality and competition arising from the proposed transaction, in particular the former given the very high level of public debate as to whether Redbird IMI are ‘fit and proper’ to run a major establishment news organisation.”
RedBird IMI, a media fund backed by a member of the UAE royal family, is trying to gain control of The Telegraph and Spectator publications.
It reached an agreement late last year to provide a package of loans to the Barclay family to help them repay the debts they owe to Lloyds Banking Group.
Following this, Frazer issued a Public Interest Intervention Notice (PIIN), triggering watchdog inquiries into the potential ownership of the newspaper by an Abu Dhabi royal.
Many MPs have warned the £600m deal risks a potential threat to press freedom, and Labour came out against a UAE-backed takeover of The Telegraph this morning.
Thangam Debbonaire, the Shadow Culture Secretary, told The Spectator that the view of the party “is that foreign governments should not own national newspapers. This is a bid by a foreign power, funded by the deputy prime minister of the UAE, and as such this bid should not pass.”
A spokesperson for the Barclay family has previously said: “The Barclay family’s proposal to Lloyds Banking Group concerns the settlement of outstanding loans.
“There is no precedent and no basis for a PIIN being issued in relation to a debt transaction, and we are highly confident that the family’s proposal would not trigger any regulatory reviews regarding the ownership of the media assets.”