Britain may ban foreign investors from acquiring local media – Kommersant

The UK government is considering introducing a legislative ban on the acquisition of British media by foreign investors. This is reported by Financial Timesciting its own government sources.

Discussions of such an initiative are caused by the possible purchase of Telegraph Media Group (TGM) by the investment fund RedBird IMI. This is a joint venture between the American RedBird Capital and the Emirati International Media Investments (IMI), headed by UAE Vice President Sheikh Mansour. Last November RedBird IMI stated about the intention to take control of TGM. Then the parties agreed that the investment fund would provide loans to pay off TMG’s debts to Lloyds Banking Group in the amount of £1.16 billion. Payment of the debt will allow TMG to be removed from external management, under which the company fell for debts, and RedBird IMI will receive an option to convert the loan into TMG securities.

The deal involving RedBird IMI has attracted the attention of British regulators and has already raised concerns among members of Parliament given the involvement of an Emirati company. On Monday, two British regulators, Ofcom and the Competition and Markets Authority, provided their own reports on the deal to the Minister for Culture, Media and Sport, Lucy Fraser. Their recommendations will remain confidential until the minister decides whether to allow the deal or carry out a more thorough investigation into it, which could drag on for months.

Separately, on Wednesday the House of Lords will consider an amendment to the Digital Markets Act that would give the government the power to veto purchases of British media companies by foreign state investors. If approved, the amendment will go for consideration to the House of Commons, where more than 100 parliamentarians already support this initiative, the Financial Times notes.

Kirill Sarkhanyants