Merger block ‘would undermine UK’

By the Editorial Team · Monday, October 19, 2026

Investors have cautioned that blocking the proposed £2 billion acquisition of Netomnia by Virgin Media O2's owners could harm the UK’s reputation for stable, long-term investment. The merger, which aims to create a stronger competitor to BT’s Openreach and expand broadband access to eight million homes, faces uncertainty as the Competition and Markets Authority’s final decision is due by December 15.

Investors have warned that blocking a proposed £2 billion takeover in the UK broadband sector could damage the country’s reputation as a stable environment for long-term investment. The Competition and Markets Authority (CMA) recently indicated concerns that the acquisition of Netomnia, the UK’s fourth-largest broadband provider, by the owners of Virgin Media O2 could substantially reduce competition in the market.

The merger, led by Nexfibra—a joint venture between Virgin Media O2’s owners and InfraVia Capital, a French private equity firm—aims to create a major challenger to BT’s Openreach by expanding broadband access to approximately eight million homes. However, the CMA’s preliminary findings have cast doubt on the deal’s viability, arguing that it could lessen competition and harm consumer interests.

In response, shareholders in both companies expressed their disappointment, highlighting how recent regulatory decisions have shaken their confidence in the UK’s investment climate. They pointed to the CMA’s move to potentially block the Netomnia takeover alongside the government’s role in facilitating BT’s takeover of TalkTalk shortly after. The investors assert that these actions may reinforce the dominant position of established incumbents, potentially stifling competition.

The investors wrote in an open letter that their substantial investments in the UK's broadband sector were based on the expectation of “clear rules, independent institutions and predictable decisions,” factors they now question due to what they describe as conflicting regulatory decisions. They warned that rejecting the deal could undermine the government’s broader growth objectives and the UK’s standing as a dependable destination for long-term capital.

The UK broadband industry has faced increasing pressure amid rising interest rates and economic challenges, making consolidation a potential strategy for smaller providers to strengthen their market position. The merger under review would mark the first major consolidation move in the sector.

The CMA is expected to issue its final decision on the proposed acquisition by December 15.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.