Lucy Frazer, the secretary of state for culture, media and sport, has extended the deadline for interested parties to make representations about the acquisition of the Telegraph Media Group (TMG) by RedBird IMI.
Frazer was set to decide today whether the takeover should be subject to a Phase 2 investigation under the merger control regime. Parties now have until 2 April.
The government is concerned that UAE-backed Redbird IMI’s acquisition of the Daily Telegraph (as well as the Sunday Telegraph and Spectator) could damage the accurate presentation of news and free expression of opinion in the right-wing publication.
Lloyds Banking Group PLC (LSE:LLOY) took control of TMG in June 2023 when owners, the Barclay family, failed to honour over £1 billion in debt repayments.
Lloyds initially wrote down the value of the group until the Barclays managed to tap Redbird IMI for a loan to help repay the debt.
RedBird IMI intends to convert the loan into ownership of The Telegraph.
This has proved controversial given Redbird IMI’s UAE backing, although the firm said it would remain “a fully passive investor” and would not ”exercise any control” over the newspaper.
“I am minded to refer the anticipated acquisition of Telegraph Media Group by (RedBird IMI) to a Phase 2 investigation on the grounds of the need for accurate presentation of news and free expression of opinion in newspapers,” Frazer said.