UK watchdog favors CityFibre as buyer of Netomnia over $2.7 billion Nexfibre deal
Britain’s competition watchdog said Nexfibre’s proposed £2 billion ($2.7 billion) acquisition of Netomnia could substantially reduce competition and that CityFibre would most likely have bought Netomnia otherwise. Nexfibre can submit remedies by October 16, ahead of a final decision on December 15.
1. Competition concerns
The Competition and Markets Authority said Nexfibre’s proposed acquisition of Netomnia could substantially reduce competition. It said CityFibre would most likely have bought Netomnia if Nexfibre had not struck its deal; CityFibre said the deal would significantly reduce competition and urged the regulator to block it.
2. Deal and next steps
Nexfibre, a joint venture backed by Liberty Global, Telefonica and InfraVia, agreed in February to buy Netomnia for £2 billion ($2.7 billion). Nexfibre’s CEO called the CMA’s alternative scenario a “counter-fantasy” and said the company would consider the report before deciding its next steps. Nexfibre can submit remedies by October 16, and the CMA’s final decision is due December 15.
