Finance
Virgin Media O2 owners to buy British fibre firm Substantial for $2.7 billion
Published by Global Banking & Finance Review®
Posted on February 18, 2026
2 min readLast updated: February 18, 2026
Quick Summary
Virgin Media O2, Liberty Global, and Telefonica are acquiring Substantial Group for $2.72 billion, aiming to challenge BT Openreach in the UK fibre market.
Liberty Global and Telefonica to Acquire Substantial Group for £2 Billion
Overview of the Acquisition
Feb 18 (Reuters) - A consortium including Liberty Global agreed on Wednesday to buy British alternative fibre provider Substantial Group for 2 billion pounds ($2.72 billion) in a bid to take on BT Openreach.
The acquisition will be made through an existing three-way joint venture between Virgin Media O2 co-owners - Liberty and Spain's Telefonica - and private equity firm InfraVia.
It is expected to unlock 3.5 billion pounds in investment in the UK as they bet on consolidation in Britain's fibre broadband market, the three companies said in a joint statement.
Investment and Market Impact
"By bringing our strengths together, we are creating a scaled and financially secure wholesale fibre challenger to BT Openreach - one that will enhance competition, strengthen the UK’s digital infrastructure and deliver greater choice and quality for consumers and businesses," they said.
Ownership Structure of Nexfibre
Infravia is set to own 50% of the enlarged nexfibre, while Telefonica, Liberty Global and Virgin Media O2 will hold 25% each.
They added they would commit 1 billion pounds in new net funding for nexfibre to fund the transaction, with Infravia contributing 850 million pounds, while Telefonica and Liberty Global will jointly put up 150 million pounds.
Substantial Group's Role
Substantial Group owns fibre network Netomnia, Britain's second-largest full-fibre alternative broadband provider.
As a result of the deal, which is expected to be completed in the third quarter of this year, nexfibre will reach 8 million homes or businesses by the end of 2027, Telefonica said, bringing the combined coverage for nexfibre and Virgin Media O2 to 20 million premises.
Britain is one of Telefonica's four core markets alongside Spain, Brazil and Germany. In its new strategy, the firm aims to significantly bolster its British network.
($1 = 0.7366 pounds)
(Reporting by Simone Lobo and Yadarisa Shabong in Bengaluru and David Latona in Madrid; Editing by Andrei Khalip)
Key Takeaways
- •Virgin Media O2 owners to acquire Substantial Group for $2.72 billion.
- •The acquisition aims to challenge BT Openreach in the UK.
- •The deal involves Liberty Global, Telefonica, and InfraVia.
- •The acquisition will be through the joint venture nexfibre.
- •Expected to unlock £3.5 billion in UK fibre market investment.
Frequently Asked Questions about Virgin Media O2 owners to buy British fibre firm Substantial for $2.7 billion
1What is an acquisition?
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.
2What is fiber broadband?
Fiber broadband is a high-speed internet connection that uses fiber-optic cables to transmit data, providing faster speeds and more reliable service compared to traditional copper cables.
3What is a joint venture?
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits and losses.
4What is investment impact?
Investment impact refers to the effect that an investment has on the economy, industry, or market, including job creation, technological advancement, and overall economic growth.
5What is the UK fiber market?
The UK fiber market refers to the sector of telecommunications that provides high-speed internet services through fiber-optic technology, which is essential for modern digital communication.
