Government gives thumbs up to Telegraph’s £575m German takeover

The Government has approved the £575 million takeover of the Telegraph newspaper group by a German media firm.

Politico and Business Insider owner Axel Springer struck the deal to buy the Telegraph Media Group last month, after a possible takeover by Daily Mail and General Trust (DMGT) was rocked by competition concerns.

On Tuesday, Culture Secretary Lisa Nandy confirmed she had given the deal the go-ahead.

Ms Nandy said in a written statement to Parliament that she has given consent to the deal and is “not minded to intervene” in the process.

“I am pleased to be able to take these positive steps, which give greater certainty to the Telegraph and its staff,” she added.

Mathias Dopfner, chief executive of Axel Springer, said: “We are pleased to have received UK government approval to proceed with this acquisition.

“After a long period of uncertainty, we can confirm that we will invest significantly in The Telegraph’s editorial excellence and international growth.”

Axel Springer said the takeover is still subject to regulatory hurdles in Ireland and Austria, but is expected to complete within the second quarter of 2026.

Bosses at Axel Springer, which also owns the German newspaper Bild, said they will back an investment programme in TMG to expand the business to help it “become the leading centre-right media outlet in the English-speaking world”.

They also said upon announcing the deal that they plan to expand the company’s footprint in the US market.

The Government approval is set to bring the three-year battle for control of the Telegraph to a conclusion.

Abu Dhabi-backed RedBird IMI is having to sell the Telegraph business after its own takeover move was blocked by the then-Tory government over foreign ownership concerns.

RedBird IMI, which was partly backed by US firm RedBird Capital but majority-owned by Sheikh Mansour bin Zayed Al Nahyan – vice president of the United Arab Emirates, originally agreed to buy the media firm and fellow title The Spectator in 2023.

The Spectator has since been sold to hedge fund tycoon Sir Paul Marshall’s OQS Ventures business for £100 million.

Lengthy talks were then held to find a new suitor after RedBird IMI was forced to sell, with New York Sun publisher Dovid Efune in exclusive discussions to take control.

These collapsed before DMGT struck a roughly £500 million agreement with RedBird IMI.

The Government indicated that a takeover by the Daily Mail owner would face scrutiny due to potential competition concerns related to its ownership of a significant share of the UK newspaper market, before Axel Springer agreed its takeover deal.