Virgin Media O2 owners to contest CMA opposition to £2 bn Netomnia acquisition
Liberty Global, Telefonica and InfraVia, through their Nexfibre joint venture, plan to challenge the UK Competition and Markets Authority’s objection to their £2 billion purchase of fibre network Netomnia. The CMA argues the deal would substantially lessen competition in wholesale broadband, favouring a combined CityFibre‑Netomnia rival to BT’s Openreach. Nexfibre says the regulator’s analysis relies on unrealistic counter‑factuals and will not offer remedies, instead seeking a supplementary interim report. Responses to the CMA’s provisional findings must be filed by Friday.
Why it matters
If the CMA blocks the transaction, the £2 bn deal could be delayed or abandoned, affecting Nexfibre’s growth plans and the broader UK fibre market consolidation. The regulator’s stance has already pushed Virgin Media’s bonds to record lows, raising financing costs for the owners.
Key facts
- 1The acquisition price is £2 billion. investing.com
- 2Nexfibre is a joint venture of Liberty Global, Telefonica and InfraVia. investing.com
- 3The CMA said the deal could substantially reduce competition in wholesale broadband services. thetimes.com
- 4Nexfibre will not submit remedial measures and will instead challenge the CMA’s reasoning. investing.com
- 5Responses to the CMA’s provisional findings are due by Friday. thetimes.com
- 6Virgin Media’s bonds fell to a record low after the CMA’s announcement, with leverage at a multiple of almost 5.9 at the end of June. thetimes.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.