CMA Escalates nexfibre–Netomnia £2bn Fibre Merger Directly to Phase 2 Competition Review
The Competition and Markets Authority (CMA) has announced it will move directly to Phase 2 — the more in-depth, intensive stage of its merger review process — of its investigation into the proposed £2 billion merger between nexfibre and Netomnia, two of the UK's largest fibre-to-the-premises (FTTP) network operators. Phase 2 is triggered when the CMA has reasonable grounds to believe a merger may substantially lessen competition; it involves an independent inquiry group, a deeper factual investigation, and can result in remedies or prohibition. The preliminary Phase 1 process began in April 2026, with the CMA inviting industry comment. Acceleration to Phase 2 is consistent with the regulator's practice where overlap is significant and the transacting parties themselves request faster progression — both reportedly preferred skipping to the more detailed review. The central competitive concern is the geographic overlap between Netomnia's existing fibre footprint and nexfibre's network, which together would concentrate FTTP infrastructure across overlapping UK areas. The deal brings together two of the fastest-growing alternative network builders (known as 'altnets') challenging Openreach's dominant infrastructure position in the UK broadband market. Regulators have long monitored altnet consolidation carefully, given that the policy rationale for funding multiple competing networks is eroded when those networks merge. A Phase 2 outcome can take up to 24 weeks from reference and may require structural or behavioural remedies as a condition of clearance.
Why this matters
Phase 2 referrals are high-intensity, resource-heavy processes that generate substantial legal work: the parties must engage with an independent panel, respond to working papers, and potentially negotiate undertakings or structural remedies with the CMA. The geographic overlap concern in fixed-line infrastructure mergers is well-established — the CMA will examine whether post-merger pricing power or reduced build incentives harm consumers. The wider altnet consolidation wave in UK fibre (driven by overcapacity and investor pressure to monetise) means this review will set a precedent for how the CMA treats future network mergers. Firms with telecoms, competition, and infrastructure regulatory practices will see direct demand from both parties and potentially from third-party network operators filing representations.
On the Ground
A trainee on this matter would manage the CMA's Phase 2 information requests and document production timetable, draft compliance checklists for merger condition precedents, and index the due diligence materials relevant to the geographic overlap analysis. They might also prepare chronology documents tracking the altnet competitive landscape for use in the inquiry panel submissions.
Interview prep
Question you might get
“What remedies might the CMA realistically impose to clear this merger, and how would a structural remedy — such as requiring the parties to divest overlapping network assets — work in practice for an infrastructure business like this?”
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