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UK Competition Watchdog Escalates £2 Billion Nexfibre–Netomnia Deal to In-Depth Merger Probe

By  |  July 2, 2026
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The UK’s Competition and Markets Authority (CMA) has launched an in-depth investigation into Nexfibre’s proposed £2 billion acquisition of broadband provider Netomnia’s parent company, marking one of the most closely watched infrastructure merger reviews in Britain’s fiber broadband sector this year.

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    The regulator moved the transaction directly into a Phase 2 investigation after the merging parties requested a fast-track review, bypassing the traditional Phase 1 assessment. The CMA will now examine whether the deal could substantially lessen competition in the UK’s rapidly consolidating full-fiber broadband market, with a final decision expected by mid-December.

    Nexfibre, a joint venture backed by Liberty Global, Telefónica and InfraVia Capital Partners, agreed earlier this year to acquire Substantial Group, the parent of Netomnia, YouFibre and Brsk. The acquisition would significantly expand Nexfibre’s fiber footprint and strengthen its position against incumbent network operator Openreach.

    Company executives argue that combining the businesses would create a stronger nationwide wholesale network capable of accelerating fiber deployment and increasing long-term competition. They say the fast-track referral should shorten regulatory uncertainty by moving directly to the CMA’s detailed assessment.

    The transaction, however, has drawn criticism from rivals, particularly CityFibre, which argues the merger would eliminate one of the UK’s fastest-growing alternative fiber providers and reduce competitive pressure in areas where the two networks already overlap. Critics contend the deal could leave fewer independent infrastructure competitors in local broadband markets, potentially affecting future investment and consumer choice.

    The investigation highlights increasing regulatory scrutiny of consolidation among Britain’s alternative network operators. After years of rapid expansion funded by private capital, many fiber builders are pursuing mergers to achieve greater scale as deployment costs rise and customer acquisition becomes more competitive.

    The CMA’s review will assess whether the proposed combination could materially reduce competition and whether any structural or behavioral remedies would be required before the acquisition can proceed. The outcome is likely to influence future merger activity across the UK’s telecommunications infrastructure sector as operators seek scale to compete with established national networks.

    Source: Gov UK