European datacentre Telecity has agreed to be bought by US datacentre giant Equinix for £2.3 billion, rejecting its planned merger with Interxion which was agreed back in April in the process.

After German regulators had given the green light, it was expected that Telecity and Interxion Holding would be going in for an all-share merger, creating a new company with a combined value of over £3 billion.

There is now speculation that Interxion itself is a potential acquisition target. Digital Realty Trust and CoreSite Realty Corp have both been tipped as potential buyers for the Amsterdam-based firm.

For weekly news updates, subscribe to our email newsletter.

Related: Telecity - Interxion Merger Gets the Green Light