CMA sounds alarm on £2B UK fibre deal
The UK’s Competition and Markets Authority (CMA) raised antitrust concerns around Nexfibre’s planned takeover of fellow broadband player Netomnia, in provisional findings from a probe which could derail the tie-up.
CMA stated that as the pair compete as wholesale providers in their respective network footprints, there was a chance of overlap which could lead to increased prices for customers.
It has asked the two companies to provide remedies within the next two weeks, while interested parties can submit comments on the provisional report until 23 October. The deadline for a final decision is 15 December.
Nexfibre, owned by Liberty Global, Telefonica and InfraVia Capital, announced the deal to acquire Netomnia in February.
Should the deal go through, VMO2, also owned by Liberty Global and Telefonica, pledged to commit traffic across 4.6 million homes.
CMA said that while there is some uncertainty regarding the timing of the future upgrade, it was satisfied there was a long-term incentive for the operator to go ahead with the plan.
Not real
In a joint statement on behalf of Nexfibre shareholders, the company stated: “The CMA’s Interim Report does not reflect the commercial and competitive reality of Britain’s fibre market. It fails to prioritise the fibre investment the country needs, and the creation of a scaled, sustainable challenger to Openreach.”
In the lengthy CMA report, the watchdog also said it believed CityFibre would have most likely agreed a deal to buy Netomnia, had Nexfibre not made a move.
CityFibre has called on CMA to block the deal.
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