Virgin Media O2 owners to buy UK fibre firm Substantial for $2.72 billion

Feb 18 (Reuters) - Virgin Media O2 owners Liberty Global LBTYA.O and Telefonica TEF.MC, along with private equity firm InfraVia, agreed on Wednesday to buy alternative fiber provider Substantial Group for 2 billion pounds ($2.72 billion), aiming to create a scaled challenger to BT Openreach.

The acquisition will be made through the trio's existing joint venture, nexfibre, and is expected to unlock 3.5 billion pounds in investment in the UK as they bet on consolidation in Britain's fiber broadband market.

Substantial Group owns fibre network Netomnia.

($1 = 0.7366 pounds)