Connect with us

Hi, what are you looking for?

Editor’s Pick

CityFibre in ‘advanced’ talks on takeovers

A Goldman Sachs-backed broadband infrastructure company is planning to launch further acquisitions to “crack open” the BT and Virgin Media O2 “weak duopoly” after raising £1.1 billion and reaching one million homes.

Greg Mesch, chief executive of CityFibre, said that the company was in “advanced conversations” with other alternative network providers that had a “compatible footprint with ours”.

Mesch, 61, said that there would “now be a phase of consolidation” in the market and that CityFibre was the “natural choice” to become Britain’s third national network. “We are more active on the consolidation level than people may appreciate,” he said.

Mesch was speaking as CityFibre passed its millionth home, keeping it on course to reach up to eight million homes by 2025, about one third of the UK market, through a £4 billion investment programme.

Residents with access to the CityFibre network can now place an order with one of thirty of its consumer internet service providers, such as Vodafone or TalkTalk, to receive the faster, more reliable full-fibre internet connections.

CityFibre is racing with BT’s Openreach, Virgin Media O2, which recently combined in an £31 billion deal, and numerous rival alternative network providers to build faster broadband networks to replace Openreach’s old, slower copper wires. The government has made upgrading the country’s broadband a key policy and has put pressure on the industry.

CityFibre has been built via acquisitions, including the £200 million purchase of TalkTalk’s Fibrenation, a fledgling fibre infrastructure company in the Yorkshire region, in January last year. The company, which was acquired for £538 million by Goldman Sachs’ West Street Infrastructure Fund and Antin Infrastructure Partners in 2018, raised £825 million in September, including new backing from Mubadala, Abu Dhabi’s state fund. In addition, its banking facilities were extended by £300 million.

CityFibre’s expansion has been underpinned by anchor tenant agreements with Vodafone, Talktalk and Zen, the internet service providers. It has 26 construction companies building in more than 60 towns and cities and claims to be the largest provider of full-fibre lines in about 25 locations. By the end of next year, it plans to be building in more than 150 locations before expanding to 285 by 2025.

Mesch said that acquisitions could accelerate CityFibre’s efforts to reach up to 14 million homes. “Virgin Media and BT are now running the narrative across everywhere that the UK’s just vying with two networks, but what they are really trying to stop is that a third big a national network emerges. I think CityFibre is now representing that third large national network based on our scale,” he said.

He added that it had formed partnerships with all the leading internet service providers except Sky, with which it had been in discussions with for eight years, and suggested that surpassing the one million homes mark could help to crystallise a deal with Sky.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!


Editor’s Pick

Bowmark Capital, the private equity investor, has backed the buy-out of Cornwall Insight, a leading provider of research, data and analysis to the energy...

Editor’s Pick

Rising diesel prices could soon stop Britain’s fishing crews from setting sail as it becomes too costly to fish, boat captains warned this weekend....

Editor’s Pick

Fewer firms are at risk of failure compared with last year, but smaller companies are struggling to stay afloat after the end of pandemic...

Editor’s Pick

Big Issue Group has revealed its exciting new rebrand and ambitious five-year strategy, which will reflect the organisation’s response to the huge challenges faced...

Editor’s Pick

The UK economy is at significant risk of entering a “mild recession” next year as soaring inflation takes its toll, according to KPMG. GDP...

Financial Advisors

The introduction of aggressive climate objectives by global economies and growing prospects for reducing carbon emissions are driving the growth of the district heating...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.