South Africa Approves MTN’s $2.2 Billion IHS Towers Acquisition With Conditions

South Africa’s Competition Commission has approved MTN’s proposed acquisition of the remaining 75.3% stake in IHS Towers, clearing a major regulatory step in the planned $2.2 billion transaction.

The approval, issued on September 30, is subject to conditions intended to preserve competition and protect public-interest concerns. MTN already owns part of IHS and has agreed to acquire the shares it does not hold, which would take its ownership of the tower company to 100%.

Fair access required

Under the conditions, IHS infrastructure must remain available to mobile network operators and other customers on fair, equitable and non-discriminatory terms. Existing lease agreements must also be renewed fairly, with no customer placed at a disadvantage compared with MTN South Africa.

The measures are designed to prevent preferential treatment for MTN South Africa and to protect competitively sensitive information belonging to IHS customers. IHS must also continue operating independently under the approval conditions.

The Commission said the proposed transaction “raises competition and public interest concerns,” making the safeguards a central part of its decision.

Employment and participation measures

The conditions also include provisions relating to jobs, ownership by historically disadvantaged persons and participation by small, medium and micro enterprises in the development of new tower sites.

IHS provides shared passive infrastructure used by mobile network operators and other licensed operators to deliver mobile and data services. It operates nearly 29,000 towers across five key MTN markets in Africa.

MTN’s regional expansion plans

MTN has described the transaction as a way to strengthen its ownership of critical digital infrastructure across Africa. The company has also said the acquisition would help it expand its digital infrastructure platform, improve network performance and support technologies such as 5G and fixed wireless access.

Nompilo Morafo, MTN Group’s chief sustainability and corporate affairs officer, said the parties believed the deal would benefit the wider industry and that the proposed conditions would address the competition and public-interest issues identified in the process.

Morafo described the South African decision as “an important milestone” following approvals in other markets. The transaction had also received approval in principle from the Nigerian Communications Commission, while approvals in Zambia had been granted by the Common Market for Eastern and Southern Africa and the Zambia Information and Communications Technology Authority.

The South African decision represents a further step toward MTN taking full control of IHS Towers. The available information does not state that the acquisition has closed or provide a completion date.