UK regulator threatens to block Nexfibre's £2bn Netomnia acquisition

The UK Competition and Markets Authority (CMA) has issued a provisional finding that the £2 billion acquisition of fiber optic operator Netomnia by Nexfibre could substantially reduce competition in the UK's wholesale fixed broadband market.

Nexfibre is a joint venture involving Telefónica, Liberty Global (co-owners of Virgin Media O2), and InfraVia Capital Partners. The deal, valued at over £2 billion, includes a commitment to invest £3.5 billion in the UK. Proponents of the merger argue the acquisition would expand network reach to approximately eight million premises by 2027, creating a sustainable challenger to BT’s Openreach monopoly.

Nexfibre shareholders released a statement claiming the CMA’s report ‘does not reflect the commercial and competitive reality of Britain’s fibre market’ and warned that blocking the deal could signal that the UK is closing its doors to international investment. The CMA has invited the parties to submit plans to address competition concerns by mid-October before a final decision is reached.