M&ATMTREGULATORY REVIEW
Telefónica and partners challenge UK regulator on Netomnia purchase
Acquirer
Telefónica and partners
Target
Netomnia
Telefónica and its partners are challenging the UK regulator regarding their proposed acquisition of Netomnia. They are requesting the Competition and Markets Authority to revise its preliminary report, which concluded the purchase could have detrimental effects, arguing it contains substantial flaws.
✦ Meridian Analysis
Telefónica, Liberty Global and InfraVia, through their vehicle nexfibre, have agreed to acquire 100 % of Netomnia for 2.350 million euros (2.000 million pounds). The transaction is currently in regulatory review; the Competition and Markets Authority (CMA) has issued a preliminary report that the purchase could have detrimental effects, but nexfibre has not yet presented the proposed remedies it was asked to provide. Instead, the consortium has requested the CMA to revise its preliminary report, arguing that it presents substantial flaws, particularly the assumption that CityFibre will acquire Netomnia. The parties have promised additional investments of 3.500 million pounds (nearly 4.200 million euros) to develop the fibre network.
What to watch next is the CMA’s final decision, to be authorized or blocked by 15 December at the latest. The consortium has not presented the remedy package it was asked to provide.
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