The UK's Competition and Markets Authority has provisionally signaled it may block a £2bn deal by Virgin Media O2 shareholders to acquire Netomnia, raising concerns over competition in the broadband sector. The CMA warned the Nexfibre-Netomnia merger could lead to a substantial lessening of competition in wholesale fixed broadband services, particularly affecting prices in northern England. Nexfibre, a joint venture between Liberty Global, Telefónica, and Infra Via Capital, aimed to create an 8mn-home fibre network to challenge BT's Openreach.
However, the CMA argued the deal was unnecessary as Virgin Media O2 is already expanding its own fibre network. The decision delays consolidation in a fragmented market where altnet challengers have raised over £31bn amid high debt and sector losses of £1.5bn in 2024. Goldman Sachs-backed City Fibre, which previously bid for Netomnia, supports blocking the deal and may pursue a rival offer.
Nexfibre criticized the CMA's interim report for not reflecting market realities, while City Fibre urged the regulator to block the deal. Submissions are due by October 23, with a final ruling expected by December 15.
Source: Financial Times Companies · Summarized by HeadlinesBriefing