MTN’s $2.2 Billion IHS Towers Deal Wins South African Approval

South Africa’s Competition Commission has approved MTN’s proposed acquisition of the 75.3% of IHS Towers it does not already own, clearing the way for a transaction valued at about $2.2 billion.

The approval, issued on September 30, is subject to conditions designed to protect competition and the public interest. If completed, the all-cash deal would give MTN full ownership of IHS Towers.

Conditions focus on equal access

The Commission said the transaction raised competition and public interest concerns because IHS infrastructure is used by mobile network operators and other licensed customers. Its conditions require fair, equitable and non-discriminatory access to IHS infrastructure for mobile operators and non-MNO customers.

Existing lease agreements must also be renewed fairly. Under the conditions, customers cannot be placed at a disadvantage compared with MTN South Africa, while preferential treatment for the MTN business must be prevented.

The measures also include safeguards for competitively sensitive customer information and require IHS to remain operationally independent.

Jobs and broader participation included

The conditions cover employment, ownership by historically disadvantaged persons and the involvement of small, medium and micro enterprises in the development of new tower sites.

The Commission’s requirements are intended to preserve access for competing operators while protecting existing IHS customers and jobs. Tower infrastructure is shared by competing mobile network operators and can influence how their networks expand and operate.

MTN links deal to network expansion

MTN announced in February that it had agreed to acquire the remaining IHS stake. The company has said that bringing IHS fully into the group would help it expand its digital infrastructure platform, improve network performance and support services including 5G and fixed wireless access.

According to MTN, IHS operates nearly 29,000 towers across five key MTN markets in Africa. The specific markets were not identified in the available information.

Nompilo Morafo, MTN Group’s chief sustainability and corporate affairs officer, said the company and IHS believed the transaction would benefit the wider industry. She said the parties had offered conditions they considered capable of addressing the competition and public interest concerns identified by regulators.

Morafo described the South African process as “an important milestone” in the transaction. She also cited approval in principle from the Nigerian Communications Commission and approvals in Zambia from the Common Market for Eastern and Southern Africa and the Zambia Information and Communications Technology Authority.

The available information does not specify when the transaction will close or whether additional regulatory or corporate approvals are still required.