CMA launches in-depth investigation into £2bn Netomnia takeover
July 1, 2026 12.37 Europe/London By Julian Clover


The Competition and Markets Authority has referred Virgin Media O2 and nexfibre’s proposed £2 billion acquisition of broadband provider Netomnia for an in-depth Phase 2 investigation, setting up a major test of consolidation in the UK’s alternative fibre market.

The regulator will examine whether the deal could reduce competition in full-fibre broadband. The proposed takeover would combine two of the UK’s largest alternative network operators, with nexfibre arguing it would create the first scaled wholesale challenger to BT Openreach.

Earlier in the day, nexfibre asked the CMA to fast-track the deal directly to a Phase 2 investigation, saying a detailed review would reach “the right answer faster”. Chief executive Rajiv Datta said the acquisition would create “the scaled, sustainable alternative to the BT Openreach monopoly” and unlock £3.5 billion of international investment while accelerating full-fibre deployment.

However, rival operator CityFibre welcomed the CMA’s decision to investigate. Chief executive Simon Holden said the takeover would remove “a successful challenger” from the market and claimed there was around 80% overlap between the two networks, raising significant competition concerns.

The Phase 2 inquiry will now examine the impact of the deal on competition, consumer choice and the future structure of the UK’s broadband infrastructure market before deciding whether the acquisition can proceed.