Source: Sharecast
The family-controlled business, which also owns Die Welt, Business Insider and Politico, has struck an all-cash deal with RedBird IMI to buy The Telegraph and Sunday Telegraph publisher. It is understood negotiations began only recently.
However, the sale of the national newspaper, one of the UK’s oldest, first began three years ago when Lloyds Banking Group seized control from the Barclay family over unpaid debts.
RedBird IMI, the UAE-backed investment group, had agreed to buy it but the deal was blocked by the then Conservative government.
It has been looking to offload its interest ever since, and last year started discussions with Lord Rothermere’s Daily Mail & General Trust. Its potential £500m takeover was referred to both Ofcom and the Competition and Markets Authority by culture secretary Lisa Nandy last month.
However, on Friday RedBird IMI said: "Following a swift and efficient negotiation, we are pleased to have reached an agreement. With the strength of their commercial offer and straightforward regulatory path to ownership, we believe that Axel Springer is well placed to take the Telegraph forward to its next chapter."
It added it was now working "closely" with the UK government to secure backing for the deal.
Mathias Dopfner, Axel Springer’s long-standing chief executive, said: "More than 20 years ago, we tried to acquire The Telegraph and did not succeed. Now our dream comes true. To be the owner of this institution of quality British journalism is a privilege and a duty.
"We see massive growth potential for TMG."
Axel Springer first attempted to buy The Telegraph in 2004, but lost out to the Barclay family. It also bid unsuccessfully for the Financial Times in 2015.
Dopfner said: "Axel Springer founded his company in 1946 under a British press licence. He built his company inspired by the tradition of Fleet Street. The Telegraph was his North Star."
