Daily Mail in talks to buy The Telegraph for £500million

It is a dramatic turn of events for the newspaper group, which has been in limbo since Lloyds Banking Group seized it from the Barclays family in 2023 while chasing repayment of £1billion in loans.

The exclusivity period will see both parties finalise transaction terms and prepare the regulatory paperwork needed for what would be one of Britain's most significant media deals in many years.

The RedBird IMI consortium's tortuous attempt to buy The Telegraph finally unravelled after concerns about foreign state influence proved insurmountable.

The joint venture between US private equity firm RedBird Capital Partners and Abu Dhabi-backed IMI had battled for two years to complete the acquisition.

Opposition from within The Telegraph's newsroom over reported connections between RedBird's chairman, John Thornton and influential Chinese state actors helped seal the deal's fate.

Earlier government rule changes limiting foreign state ownership of UK newspapers to 15 per cent had already forced a restructuring of their bid.

Lord Rothermere had originally planned to take just under 10 per cent of The Telegraph as part of the RedBird-led consortium.

Now he's moved to acquire the entire operation, with DMGT stressing there will be "no foreign state investment or capital in the funding structure".

The proposed acquisition would create a formidable right-leaning publishing powerhouse, bringing together two of Britain's most influential conservative newspapers under one roof.

DMGT's portfolio already includes the Daily Mail, Mail on Sunday, Metro, the i Paper and New Scientist magazine.

Adding The Telegraph and Sunday Telegraph to this stable could hand Lord Rothermere control of almost half the national newspaper market.

The combination has sparked immediate political concerns. A former Labour adviser close to the government warned: "There will be huge concern from not just Labour, but all of the 'left' over the power a combined Daily Mail and Telegraph will have in political terms."

The timing is particularly important, with Reform UK currently enjoying a surge in popularity against the government.

The deal faces significant regulatory hurdles, with media regulator Ofcom and the Competition and Markets Authority expected to launch in-depth investigations into the merger's impact on media plurality.

Culture Secretary Lisa Nandy is set to review the acquisition, with a Department for Culture, Media and Sport spokesman confirming: "The Secretary of State notes the announcement of a prospective new deal.

"She will review any new buyer acquiring the Telegraph in line with the public interest and foreign state influence media mergers regimes set out in legislation."

Analysts suggest DMGT might need to offload Metro or the i Paper to ease competition concerns. Despite this, DMGT remains optimistic, stating it's "confident any regulatory processes can be concluded swiftly and positively, as the case for approving the acquisition is compelling."

Lord Rothermere expressed deep admiration for the newspaper he's long coveted, saying: "I have long admired The Daily Telegraph. My family and I have an enduring love of newspapers and for the journalists who make them. The Daily Telegraph is Britain's largest and best quality broadsheet newspaper, and I have grown up respecting it."

He praised editor Chris Evans and promised significant resources for the newsroom, with plans to transform The Telegraph into a global brand matching the Daily Mail's international success.

DMGT intends to pour substantial investment into Telegraph Media Group, focusing particularly on American expansion, where the Daily Mail has already established strong editorial and commercial operations.

The company emphasised that The Telegraph would maintain complete editorial independence from other DMGT titles.