By Gabriel Princewill-
The UK government has unveiled plans to prohibit foreign governments from acquiring ownership stakes in British newspapers and magazines.
This announcement effectively puts a halt to an Abu Dhabi-led bid to acquire the Daily and Sunday Telegraph, as outlined in an amendment to the Digital Markets Act presented in the House of Lords.
Culture minister Lord Parkinson(pictured) delivered the statement, affirming the government’s commitment to amend the media merger regime to explicitly prevent foreign state involvement in newspaper and periodical mergers.
Under the proposed measures, any such mergers would be subject to scrutiny by the Competition and Markets Authority (CMA) through a new foreign state intervention notice. The secretary of state would be mandated to block deals deemed to contravene the CMA’s assessments.
The decision comes amid heightened concerns over the proposed takeover of the Telegraph titles by Redbird-IMI, a joint venture between the United States and Abu Dhabi, with 75% ownership held by Sheikh Mansour, the vice president of the United Arab Emirates (UAE).
The maneuver by Redbird-IMI, which circumvented traditional auction processes, prompted significant debate within Conservative circles, with figures like former Tory leaders Lord Hague and Iain Duncan Smith arguing against foreign state ownership of crucial media assets.
Sheikh Mansour bin Zayed Al Nahyan, the key figure behind the bid, is a member of the Emirati royal family and holds substantial investments in various British businesses.
With an estimated net worth of £13.2 billion, Sheikh Mansour’s family, the House of Nahyan, is among the wealthiest globally, with vast interests in international ventures.
Notably, Sheikh Mansour’s investments extend beyond traditional businesses to include high-profile acquisitions like Manchester City Football Club, purchased for £200 million in 2008, which has since seen significant success both on and off the field.
Critics of the proposed takeover argue that allowing significant media assets to fall under foreign state control raises questions about editorial independence and national security.
Moreover, concerns persist about the potential influence of foreign governments on the dissemination of information and the shaping of public opinion.
The government’s move to safeguard British media outlets from foreign state ownership reflects a commitment to preserving the integrity and autonomy of the UK’s journalistic landscape.