Telefónica makes a move in its race to consolidate the sector

MadridWith Marc Murtra's arrival as president of Telefónica, the company set itself the goal of growing through the consolidation of the telecommunications sector in Europe in order to compete with the Chinese and American markets, where there are far fewer operators. And now, after presenting a strategic plan for the next five years in which he has put his intentions in black and white –albeit in broad strokes–,He's already making moves to advance in this long-distance race: the telecom It is finalizing the purchase of Netomnia, the UK's fourth-largest broadband network operator, for around £2 billion (€2.3 billion), according to reports. Financial Times

But the operation doesn't only affect Telefónica. According to the British newspaper, the company is negotiating with Liberty Global, the co-owner of the telecom The acquisition of this operator is being pursued by the British company VMO2 and InfraVia Capital. If the acquisition is successful, it would be Telefónica's first move under this new strategic plan, which prioritizes growth in Spain, Germany, and Brazil, while gradually divesting its assets in Latin America.

However, the news about the Netomnia acquisition comes just after Murtra's company announced the opening of an office in London to "strengthen," in the words of the telecomIts role in the country and, at the same time, its objectives in Europe. In fact, the operation would narrow the gap between Netomnia and British Telecom's (BT) fiber operator, Openreach, which leads the UK market. Heading the new office is Telxius CEO Mario Martín, with experience in mergers and acquisitions. This is a characteristic of his background that he shares with the newly appointed CEO of Telefónica's German subsidiary, Santiago Argelich. However, how Telefónica can move firmly toward this consolidation remains one of the biggest unknowns, especially considering the role that regulators in Europe play in operations like this. Murtra has repeatedly defended the intention to "seize the [acquisition] opportunities that arise and generate value for shareholders," although he has avoided giving specific names, regions, or timelines, even though the market has speculated about companies like Vodafone Spain or the Romanian company Digi. "Discretion," Murtra said.