MTN’s $6.2 billion IHS acquisition to face Nigerian regulatory review

Nigeria’s communications ministry will assess MTN’s $6.2 billion plan to fully acquire IHS Towers, citing concerns over competition, infrastructure control and the broader impact on the telecom sector.

MTN’s bid to acquire IHS Towers will be subjected to a “thorough assessment,” a statement from Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, said on Tuesday.

“Given the strategic importance of telecommunications infrastructure to national security, economic growth, financial services, innovation, and social inclusion, and to ensure strategic actions by private sector operators are in line with the market development agenda under the Renewed Hope policy directions of the President, the Ministry will undertake a thorough assessment of this development in collaboration with the relevant regulatory authorities to review its impact on the sector,” it read.

MTN Group on Tuesday announced plans to complete a full acquisition of the remaining 75% of IHS for $2.2 billion— $1.1 billion in cash on IHS’s balance sheet, along with available liquidity and debt from MTN. The telecommunications company will pay $8.5 per share, in an all-cash deal that values the IHS Towers at $6.2 billion.

The telco currently owns 24.7% of IHS Towers and intends to take the company private once the transaction is completed. The deal would consolidate ownership of one of the most critical layers of Nigeria’s telecoms value chain under its largest mobile network operator.

IHS Towers is one of the largest independent tower companies globally, operating more than 37,000 towers across Africa and Latin America. Earlier in the day, it disclosed the sale of its Latin American assets to Macquarie Asset Management for approximately $952 million, signalling a retreat from the region and sharpening its focus on core African markets ahead of the proposed buyout.

However, the proposed sale has raised questions in Nigeria, where IHS provides tower infrastructure not only to MTN but also to rival operators, including Airtel Nigeria. With MTN currently controlling about 52% of the country’s mobile market, integrating both network services and tower infrastructure could shift competitive dynamics.

Tower compani...