German publisher vows to retain newspaper’s ‘British identity’ in £575m deal that ends years of uncertainty
Christopher WilliamsBusiness Editor
The takeover of The Telegraph by the German publisher Axel Springer for £575m is to be waved through to end almost three years of uncertainty and unlock investment in its future.
Lisa Nandy, the Culture Secretary, told the House of Commons that she had given permission for the Abu Dhabi-backed investor RedBird IMI to sell security over the newspaper to the owner of Politico and Business Insider.
The security is structured to be immediately converted to full ownership. It means that Axel Springer could be in effective control of The Telegraph within days.
Mathias Döpfner, the chief executive and controlling shareholder of Axel Springer, welcomed the decision and committed himself to retaining The Telegraph’s “British identity”.
He said: “We are pleased to have received UK Government approval to proceed with this acquisition. After a long period of uncertainty, we are able to confirm that we will invest significantly in The Telegraph’s editorial excellence and international growth.
“The Telegraph will join a global network committed to independent reporting while retaining its distinct editorial voice and British identity.”
The decision by Ms Nandy came alongside an indication that the deal would not face a regulatory investigation that would have imposed further months of delay.
The Culture Secretary said she was “not minded to” involve the Competition and Markets Authority or Ofcom, which can be used to scrutinise media takeovers where there are competition or public interest concerns.Lisa Nandy, the Culture Secretary says she is ‘not minded’ to intervene in the publishing dealCredit: Paul Grover
Axel Springer is Europe’s largest news publisher, with decades of heritage in independent journalism via major titles including Bild and Die Welt.
Its English-language publications, Politico and Business Insider, have small market shares in the UK and lawyers for the company have argued that they do not give rise to questions of competition or plurality.
Ms Nandy has not made a final decision and has reserved the right to change her mind if new information comes to light.
But she said: “I am pleased to be able to take these positive steps, which give greater certainty to The Telegraph and its staff.”
The deal also requires regulatory approval in Ireland and Austria, but the British decision is the critical one and lays the ground for Axel Springer to take charge of The Telegraph very soon.
The news was greeted with relief in The Telegraph newsroom. It ends a period of damaging uncertainty which began on June 7, 2023 when the Barclay family’s unpaid debts caught up with them.
Lloyds Banking Group seized control of The Telegraph over £1.2bn in overdue lending to its proprietors, who also owned the parcel courier Yodel and online retailer Very.
The bank planned an auction of The Telegraph, which was derailed by a deal between the Barclay family and the rulers of the United Arab Emirates.
The Gulf state paid off the family’s debts in exchange for security over The Telegraph for RedBird IMI, which it majority funded.
Its plan to take full ownership was blocked following a campaign against the takeover by The Telegraph and a cross-party outcry, which led to a ban on foreign state ownership of newspapers.
Without it, The Telegraph would have covered the Iran conflict under the ownership of the UAE, where authorities have cracked down on free speech, including jailing foreigners.
The decision to block RedBird IMI set off a diplomatic row and a torturous journey to escape it. In the years since, multiple sales have been agreed and not completed.
They included one deal with a previously unknown New York publisher and one with the US private equity firm RedBird, which was the UAE’s junior partner.
It planned to allow the Gulf state to retain a 15pc stake after Labour relaxed the ban on foreign state shareholdings. The Telegraph also campaigned against those plans.
When they collapsed in October, Lord Rothermere, the owner of The Daily Mail, agreed to buy The Telegraph in a deal that was set to face detailed regulatory scrutiny.Axel Springer gatecrashed Lord Rothermere’s deal to buy The Telegraph last monthCredit: Finnbarr Webster – WPA Pool/Getty Images
Then, finally, Axel Springer swooped with a knockout bid last month that appears set to glide through the political and regulatory gauntlet.
Mr Döpfner, 63 with a background in journalism, became chief executive of Axel Springer in 2002 and previously bid for The Telegraph when it was last sold in 2004.
The German company, founded in post-war Berlin, has successfully expanded under Mr Döpfner’s leadership and has said it aims to become the free world’s leading news publisher.
Its corporate “constitution” promotes freedom, free speech, free markets, the rule of law, and democracy.
Bankwatch 