German media group Axel Springer to buy Telegraph for £575m

German media firm Axel Springer has agreed to buy the Telegraph Media Group for £575 million, scuppering efforts by the owner of the Daily Mail to snap up its UK newspaper rival.

Daily Mail and General Trust (DMGT) had previously agreed a £500 million deal to buy The Telegraph last year.

However, Abu Dhabi-backed consortium RedBird IMI said it now plans to sell the business to the Berlin-based Politico owner.

RedBird IMI is having to sell the business after its own takeover move was blocked by the then-Tory government over foreign ownership concerns.

Axel Springer chief executive Mathias Dopfner said: “More than 20 years ago, we tried to acquire The Telegraph and did not succeed.

“Now our dream comes true.

“To be the owner of this institution of quality British journalism is a privilege and a duty.”