UK regulator: Nexfibre’s £2 billion takeover of Netomnia could harm competition

The UK competition regulator, the Competition and Markets Authority, announced on Friday that it has provisionally found that the takeover of fibre broadband operator Netomnia by Nexfibre, for £2 billion ($2.7 billion), could significantly reduce competition in the wholesale supply of fixed broadband services, as Reuters reports.

Nexfibre is a joint venture backed by Liberty Global, Telefónica and InfraVia, while Netomnia is Britain’s second-largest fibre “altnet”. The takeover deal was agreed in February, as Reuters reports.

Nexfibre said the CMA’s findings do not reflect the reality of the UK fibre market and that the decision “fails to prioritise the fibre investment the country needs” and the creation of a sustainable rival to BT’s Openreach.

The buyers have the opportunity to propose remedies by October 16, before the regulator’s final decision. The deal would add more than 3.4 million fibre premises and more than 500,000 customers, reaching 8 million premises by the end of 2027 and challenging BT’s national Openreach, according to Reuters reporting.