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The owner of the Daily Mail has struck a £500m deal to buy the Telegraph titles, in a move that will create a right-leaning publishing powerhouse.

Lord Rothermere’s Daily Mail & General Trust (DMGT) has 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 finalise the terms of the transaction.

The two parties say that they expect this process to “happen quickly”, however the deal is likely to trigger an in-depth investigation by the UK competition regulator.

DMGT, which owns a stable of titles including the Metro, the I and New Scientist, already handles the advertising contract for the Telegraph titles.

The move comes barely a week after RedBird Capital, The US group led by Gerry Cardinale, pulled out of its own £500m deal to buy the titles.

Lord Rothermere has long coveted taking control of the Telegraph titles, and had been in line to take around a 10% stake as part of the aborted RedBird Capital consortium deal.

“I have long admired the Daily Telegraph,” said Rothermere. “My family and I have an enduring love of newspapers and for the journalists who make them. 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.”

It is understood that the Mail and Telegraph editorial teams will remain separate, and DMGT says that it will provide investment to pursue the titles’ goal of becoming a global brand.

DMGT said that the deal would give “much-needed certainty” to Telegraph staff, who have been stuck in limbo over a sale process that has dragged on for more than two years.

“DMGT and RedBird IMI have worked swiftly to reach the agreement announced today, which will shortly be submitted to the secretary of state,” said a spokesperson for RedBird IMI.

RedBird Capital, the junior partner in the RedBird IMI, had stepped in after the government introduced rules banning foreign states from owning UK newspapers.

IMI is controlled by Abu Dhabi’s Sheikh Mansour bin Zayed al-Nahyan, the vice-president of the United Arab Emirates and the owner of Manchester City FC.