Government watchdogs have confirmed they are examine whether the £50m takeover of JPIMedia daily the i may lead to a “substantial lessening of competition.”

The Competition and Markets Authority has announced it is looking into whether a “merger situation” has been created as a result of the buyout of the cut-price title by Daily Mail and General Trust.

The deal between the two parties was revealed in November, but the Department for Digital, Culture, Media and Sport said earlier this month it was “minded” to intervene in the process.

DCMS has now announced it has issued a public interest intervention notice in relation to the purchase.

JPIMedia is still discussing a possible sale of its 200-plus regional titles to David Montgomery’s new takeover vehicle National World.

While the two deals are entirely separate, it is possible that a hold-up with the i deal could complicate any sale of the regional portfolio.

In a letter to DMGT, DCMS said: “We note DMGT’s representations made in relation to editorial independence and media plurality. While the Secretary of State considers that these representations raise matters that could be usefully considered by Ofcom, nothing in them leads her to dismiss her concerns as set out in the ‘minded to’ letter.

“In particular, we note the representations made that editors at DMGT are able to make independent editorial judgements, without interference from the proprietor, and that there is a commercial incentive for retaining the editorial position of the i.

“The Secretary of State has noted these points, and considers that this is an issue that could be usefully further investigated by Ofcom.”

“We note your concern that a delay caused by an Ofcom report will impede DMGT in making financial investments at the i. The commercial impact of an intervention is not something that can be taken into account under the media merger regime.”

Issuing its own announcement, the CMA said: “The Competition and Markets Authority is considering whether it is or may be the case that this transaction has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

JPIMedia forerunner Johnston Press had itself purchased the title for £24m in 2016 from Evgeny Lebedev’s Independent Print Limited.

The company put itself up for sale in the summer and it was understood management had originally hoped to sell the group as a single entity.

However after DMGT emerged as the “frontrunner” to buy the i in September it became clear that the group would be broken up.

HTFP has approached DMGT for a response, while JPIMedia has to declined to comment.