CMA Provisionally Blocks Nexfibre Acquisition of Netomnia

The Competition and Markets Authority has provisionally determined that Nexfibre's £2 billion acquisition of Netomnia could substantially reduce competition within the United Kingdom's wholesale fixed broadband market. Nexfibre, a joint venture backed by Liberty Global, Telefonica, and InfraVia Capital Partners, first announced the deal in February with the goal of expanding its reach to eight million premises by 2027 to challenge BT's Openreach network.

In response to these findings, the regulator has ordered Nexfibre and Substantial, the owner of Netomnia, to submit mitigation plans by October 16 before a final decision is reached. Nexfibre's shareholders have contested the findings, arguing that the regulator is ignoring market realities and that the merger would unlock £3.5 billion in international investment to increase consumer choice.

Cityfibre, a rival broadband provider, has urged the regulator to block the transaction entirely. The company claims the deal risks delivering fewer benefits to UK consumers, specifically citing concerns over slower speeds and higher prices.