UK CMA Flags Nexfibre-Substantial Deal as Anti-Competitive
LBTYA is trading near its 52-week low of $8.91 (0.1% above the low).
Summary
The UK Competition and Markets Authority has provisionally found that Nexfibre's proposed acquisition of Substantial could substantially reduce competition in the wholesale supply of fixed broadband services. Nexfibre is a joint venture involving Liberty Global, and this regulatory hurdle could delay or block the deal. The CMA is inviting remedy proposals within 14 days, with a final decision expected by 15 December. This adds regulatory uncertainty to Liberty Global's UK broadband strategy, following the recent Ofcom fine on its Virgin Media subsidiary.
At the time of this announcement, LBTYA was trading at $8.92 on NASDAQ in the Technology sector, with a market capitalization of approximately $3B. The 52-week trading range was $8.91 to $13.52. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.