The UK Competition and Markets Authority has opened the first stage of its review into nexfibre’s proposed £2 billion acquisition of Netomnia, inviting comments from interested parties as it assesses the impact of the transaction on competition.
The regulator said the current “invitation to comment” is part of its information-gathering process and that it has not yet launched a formal merger investigation. The consultation runs until May 8.
nexfibre responded by saying the proposed deal would “unlock £3.5 billion of capital” and create a scaled, financially secure wholesale challenger to BT Openreach. Chief executive Rajiv Datta said the transaction would strengthen the sector and support long-term investment in full-fibre infrastructure, while shareholders InfraVia, Liberty Global and Telefónica argued that consolidation is now essential to sustain investment and reduce market fragmentation. Those claims broadly mirror the rationale set out when the deal was announced in February.
The acquisition would be one of the biggest consolidation moves yet in the UK altnet market, valuing Netomnia’s parent Substantial Group at around £2 billion and significantly expanding the footprint available to Virgin Media O2 and nexfibre, taking the combined reach towards 8 million premises and giving the wider group access to around 20 million homes over time.
The deal has already drawn concern from rivals. CityFibre has previously urged the CMA to scrutinise the combination closely, arguing that it could reinforce a duopoly structure in UK broadband if not properly tested.
The transaction has been presented by nexfibre and its backers as a necessary response to the financial pressures facing many fibre altnets as the market moves from rapid build-out to a more consolidation-led phase.
