nexfibre, the wholesale fibre joint venture of InfraVia, Liberty Global and Telefónica, agreed on 18 February to acquire Substantial Group, which runs the Netomnia network, at an enterprise value of £2bn.
Why nexfibre is buying Substantial Group (Netomnia)
nexfibre said the deal creates the largest alternative fibre platform in the UK and a wholesale challenger to BT Openreach, with a full-fibre footprint of about 8 million premises by the end of 2027 including upgraded Virgin Media O2 cable homes.
“This transaction creates the largest alternative fibre platform in the UK”
Deal terms and financing
Substantial Group had about 3 million premises and 450,000 customers, expected to exceed 3.4 million and 500,000 by completion. InfraVia is providing £850m and Liberty Global and Telefónica £150m jointly of new net funding. Virgin Media O2 will buy the retail business for £150m and will receive about £1.1bn in cash and an indirect 15% stake in nexfibre in return for wholesale commitments on 4.6 million homes.
Regulatory approvals and timing
Completion was expected by the third quarter of 2026. After an invitation to comment in April, the CMA referred the merger to a Phase 2 investigation on 1 July 2026 at the parties' request, with a statutory deadline of 15 December 2026, according to ISPreview. CityFibre, a rival bidder, has said about 80% of Netomnia's network overlaps with its own.
Market context
Substantial Group is described as the UK's second-largest alternative fibre provider. The deal tests the CMA's approach to consolidation among UK full-fibre network builders.
