Telefónica makes its first major acquisition to grow in Europe
The Spanish telecom company is partnering with two other firms to acquire the British company Netomnia for 2.294 billion euros
MadridTelefónica makes its first major acquisition to grow in Europe telecom The Spanish company chaired by Marc Murtra has reached an agreement with Liberty Global, co-owner of the British telecommunications company VMO2, and InfraVia Capital, to acquire 100% of the share capital of the British firm Netomnia for 2.294 billion euros, as reported Wednesday afternoon by MV. The deal began to circulate a few days ago, when the Financial Times He announced that Telefónica, together with the other two companies, was negotiating the acquisition of what is the second largest fiber optic operator in the United Kingdom.
In this way, Telefónica takes the first step towards advancing one of the cornerstones of its current strategic plan: the consolidation of the sector in Europe and, in particular, growth in its four main markets (Spain, the United Kingdom, Germany, and Brazil). After withdrawing from Latin America, the telecom The Spanish company wants to dedicate all its efforts to gaining scale in Europe, despite regulatory difficulties. According to Telefónica, the Spanish firm, along with Liberty Global, will contribute £150 million to finance the operation, while Infravia Capital will contribute approximately £850 million.
In a statement, Telefónica explains that Netomnia's fiber network, which will serve more than 3.4 million homes and 500,000 customers once the transaction is completed (subject to regulatory approvals), will be integrated into VMO2's Nexfibre fiber network (Telefónica's UK operator). With this integration, Nexfibre will have a fiber network reaching approximately 8 million homes by the end of 2027, while the combined Nexfibre and VMO2 network will reach a total of 20 million homes.
Results in one week
The acquisition has been confirmed less than a week before Telefónica presents its results for fiscal year 2025. So far, the company's withdrawal from Latin America has resulted in losses of €1.08 billion between January and September 2025, compared to a profit of €954 million last year. Without the impact of divesting its Latin American subsidiaries, Telefónica would have posted a net profit of €828 million from continuing operations in the first nine months of the year, 45.9% less than in the same period of 2024, as reported last November.