The owner of the Daily Mail has struck a deal to buy the Telegraph titles in a £500 million (A$1.02 billion) deal.
The Daily Mail & General Trust (DMGT) entered a period of exclusivity with RedBird IMI, which has been seeking a buyer since being forced to put the papers up for sale last spring, to complete the terms of the transaction.
RedBird IMI is a joint venture between the United Arab Emirates and the U.S. private equity firm RedBird Capital Partners.
RedBird Capital's own bid for control of the Telegraph collapsed last week.
The Telegraph has remained in limbo for over two years, when the RedBird IMI consortium paid off debts to the Telegraph’s previous owners, the Barclay Family, in hopes it would take eventual ownership of the papers.
Chair of the House of Commons Culture, Media and Sport Committee said she was looking forward to seeing a resolution.
"This situation has been unsustainable for the business and unsettling for staff so I hope the government set out its position early next week," she said.
"The Committee have largely stayed out of the discussion to date, because takeovers are quasi judicial in terms of the Government's role."
DMGT and RedBird IMI said they expect the deal to be finalised soon.
DMGT chairman Lord Rothermere said the deal would give some “much-needed certainty and confidence” to its employees.
"The Daily Telegraph is Britain's largest and best quality broadsheet newspaper and I have grown up respecting it,” he said.
“It has a remarkable history and has played a vital role in shaping Britain's national debate over many decades."
However, the deal is likely to trigger an in-depth investigation by the media regulator Ofcom and the Competition and Markets Authority (CMA).
This is because the creation of a large rightwing media organisation would spark concerns in the Labour Party, at a time when Reform UK is riding a wave of popularity against the government.
It is almost impossible to overstate the feelings of fear and hostility the Telegraph and Mail incite in many Labour politicians – including senior members of the government,” said a former Labour adviser close to No 10.
“They have jointly been responsible for numerous stories and sustained campaigns that have ended cabinet careers.”
DGMT, which owns titles like Metro, The i Paper and New Scientist, already handles the advertising for the Telegraph titles.
