The owners of Nexfibre have decided not to submit remedies to address UK competition concerns over the proposed £2 billion acquisition of Netomnia’s parent company, Substantial, choosing instead to challenge the regulator’s assessment of the deal.

Liberty Global, Telefónica and InfraVia Capital Partners, which jointly own Nexfibre, argue that the Competition and Markets Authority’s (CMA) provisional findings do not reflect the commercial realities of the UK’s fibre broadband market.

The proposed acquisition, announced in February 2026, would bring Netomnia’s fibre infrastructure into Nexfibre’s network, creating a larger wholesale broadband operator capable of competing with BT’s Openreach network.

Why the CMA has raised concerns

The CMA provisionally concluded that the acquisition could substantially reduce competition in the wholesale supply of fixed broadband services. Its assessment focuses on the overlap between the networks and the possibility that an independent competitor could be lost through the transaction.

The regulator has also considered whether CityFibre could acquire Netomnia instead. It believes that combining the two networks could create a stronger independent challenger to Openreach while preserving competition between separate operators.

Why Nexfibre’s owners oppose the assessment

Nexfibre’s shareholders dispute the CMA’s assumptions about what would happen if the proposed acquisition did not proceed. In particular, they question whether CityFibre would be a credible alternative buyer and whether the investment associated with the Nexfibre transaction would take place without the deal.

The investors say they considered potential remedies, including commitments relating to network investment and wholesale access, but concluded that no package could address the regulator’s current assumptions.

They argue that the acquisition would support further fibre investment and create a stronger competitor to Openreach. The shareholders have called for the CMA to reassess its analysis in light of developments in the wider broadband market.

What happens next?

The CMA’s investigation remains open, and the decision not to submit remedies does not mean that Nexfibre has formally withdrawn from the acquisition or that the deal has been blocked.

The regulator is considering responses to its provisional findings, with the deadline for interested parties set at 5pm on 23 October 2026. The published statutory deadline for the final decision is 15 December 2026.

The outcome will determine whether the acquisition can proceed and whether the CMA considers any further action necessary to address its competition concerns.

Implications for UK broadband competition

The dispute highlights the challenge facing regulators as fibre broadband operators seek to consolidate networks and expand their reach.

Supporters of the acquisition argue that a larger network could improve investment capacity and strengthen competition with Openreach. The CMA, meanwhile, is concerned that combining overlapping networks could remove an independent competitor and weaken competitive pressure in parts of the market.

For broadband providers and consumers, the key issue is whether consolidation would support wider network investment while preserving sufficient competition to encourage competitive prices, service improvements and innovation.

The CMA’s final decision will be an important milestone for the UK’s alternative fibre broadband sector, although the outcome remains uncertain.