The deal between TalkTalk and City Fibre, for the latter to buy Fibre Nation, is reported to be back on track.
The two companies were close to a £200 million deal for Goldman Sachs backed City Fibre to buy the Fibre Nation division of TalkTalk. However, the deal was put on the back burner when the British Labour party declared it would nationalise UK broadband assets if it won the General Election in December 2019.
With the Conservative party winning a decided victory, the deal is now said to be back on track according to Sky News. While insiders say the deal is now imminent, readers will appreciate that with any M&A deal it can never be counted on until the ink is dry on the contract.
The deal makes sense for both parties, however, as it would enable City Fibre to expand its market share of FTTH from 5 million to 8 million homes by 2025 and would allow TalkTalk to significantly reduce its debt.
See: City Fibre goes private for half a billion
See: Daisy bids for TalkTalk’s direct B2B customers