The UK’s competition watchdog has provisionally warned that it may block a proposed £2 billion takeover of broadband provider Netomnia by Nexfibre.

The Competition and Markets Authority (CMA) said the proposed acquisition could substantially reduce competition in the wholesale fixed-broadband market because the companies’ networks overlap in parts of the UK.

Nexfibre has argued that combining the networks would help create an 8-million-home fibre network, strengthening competition with BT’s Openreach and supporting further broadband investment.

However, the CMA said it is concerned that the network expansion could potentially take place without the merger and that reduced competition could affect prices for broadband customers, particularly in northern England.

The proposed deal was agreed in February, with Netomnia currently owned by Substantia Group. Nexfibre is a joint venture involving Liberty Global, Telefónica and InfraVia Capital.

The decision is currently provisional. The companies have until 23 October to respond to the CMA’s findings, with a final decision expected by 15 December 2026.