Daily Mail and General Trust DMGT has entered exclusive negotiations to acquire The Telegraph Media Group TMG in a proposed deal.

The publisher of the Daily Mail has agreed to buy the Daily Telegraph and Sunday Telegraph for £500m ($650).

The DMGT said it has entered a period of discussion with the RedBird IMI-a joint venture between United Arab Emirates UAE and the U.S. private equity firm RedBird Capital Partners.

The proposed agreement signals a potential consolation of Britain’s right -leaning press following the collapse of a previous bid by a UAE-backed consortium.

The deal comes a week after US-based private investment firm RedBird Capital Partners withdrew its bid for The Telegraph, one of Britain's biggest newspapers.

RedBird Capital’s bid for control of The Telegraph collapsed last week. The US-based investment firm has formally withdrawn from the acquisition process.

The firm had previously sought to buy these media assets, but faced legislative opposition due to the involvement of Abu Dhabi’s IMI group, which is owned by the Abu Dhabi royal family.

“RedBird has today withdrawn its bids for The Telegraph Media Group TMG,” said the RedBird’s spokesman in a statement.

“We remain fully confident that The Telegraph and its own world-class team have a bright future ahead of them and we will work hard to help secure a solution which is in the best interests of employees and readers,” the statement added.

Daily Mail publishers’ steps in to acquire Telegraph Media Group TMG

In a smart move, DMGT has stepped in to acquire TMG following RedBird IMI’s withdrawal from the deal.

DMGT chairman Lord Rothermere said he had "long admired the Daily Telegraph" and the proposed acquisition would give 'much-needed confidence' to Telegraph employees after years of uncertainty about the title's future.

He further said, "The Daily Telegraph is Britain's largest and best quality broadsheet newspaper and I have grown up respecting it. It has a remarkable history and has played a vital role in shaping Britain's national debate over many decades."

The new deal will also enable the group to benefit from Daily Mail crucial resources and experience in transforming media brands in a digital world and growing British brands into global news operations’.

If the transaction is approved and finalized-it would merge two of Britain’s most prominent right-leaning news outlets, prompting scrutiny over the concentration of media power.

DMGT said that the Daily Mail and Telegraph editorial teams will remain separate and editorially independent, with investment provided to pursue the titles’ goal of becoming a global brand.

Additionally, the Secretary of State will review the new deal, with DMGT stating its case for approval is compelling as the funding structure will not include foreign state investment.

“DMGT is confident any regulatory processes can be concluded swiftly and positively, as the case for approving the acquisition is compelling,” the company said.