MTN Group’s $2.2bn IHS Towers deal faces 30% sell-down order in Nigeria

MTN Group’s $2.2bn IHS Towers deal has won approval from Nigerian authorities, but the telecoms giant must reduce its stake in the Nigerian business to address competition concerns.

The approval came from the Federal Competition and Consumer Protection Commission (FCCPC), Nigeria’s competition regulator.

However, the commission attached a major condition to the deal.

MTN Group must sell up to 30% of its stake in the Nigerian component of IHS Towers over time. The shares must be sold at market prices, according to the condition attached to the approval.

The move aims to prevent MTN from gaining excessive control over telecommunications infrastructure in Nigeria.

The regulator is concerned that increased ownership could strengthen MTN’s position and put rival operators at a disadvantage.

Competitors such as Airtel and T2 Mobile rely on telecommunications infrastructure to provide services to millions of customers across the country.

Therefore, the FCCPC’s condition seeks to preserve competition in the sector while allowing the transaction to proceed.

MTN Group’s $2.2bn IHS Towers deal involves one of Africa’s largest telecommunications companies and a major provider of mobile infrastructure.

IHS Towers owns and operates telecommunications towers that mobile network operators use to connect customers.

The transaction could reshape ownership of critical telecoms infrastructure in Nigeria. However, the required sell-down means MTN will not be allowed to increase its influence without limits.

The FCCPC’s decision highlights the regulator’s role in scrutinising major corporate transactions that could affect competition and consumers.

For now, MTN must comply with the sell-down requirement as part of the approval.

The decision could also influence how future mergers and acquisitions involving major telecommunications assets are assessed in Nigeria.