A significant regulatory hurdle has been cleared in MTN Group’s proposed $6.2bn acquisition of IHS Towers, following conditional approval from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC).
The development, disclosed in MTN Group’s half-year 2026 results released on Monday, brings the telecommunications infrastructure deal closer to completion and would pave the way for MTN to take full ownership of IHS Towers.
According to MTN, the remaining requirements for the transaction are largely regulatory, with some approvals already in progress and others expected to be obtained shortly.
The FCCPC’s approval, however, comes with a condition requiring MTN to sell down up to 30 per cent of the Nigerian component of the IHS business over time and at market prices.
“With regards to the FCCPC in Nigeria, conditional approval of the transaction has been received. This is conditional on MTN Group selling down up to 30 per cent of the Nigerian component of the IHS business at market prices over time. MTN is comfortable with the conditions as set out,” MTN stated in its results.
The telecoms giant said advancing the IHS transaction remains a key priority for the second half of 2026. It also expects the acquisition to contribute positively to revenue, earnings and free cash flow over time.
Deal Would Give MTN Full Ownership of IHS
MTN agreed in February to acquire the remaining shares of IHS Towers at $8.50 per share. Once completed, the transaction would increase MTN’s ownership of the tower company to 100 per cent, subject to the fulfilment of regulatory and other closing conditions.
The proposed acquisition would also result in IHS Towers being delisted from the New York Stock Exchange, bringing the publicly traded chapter of the company to an end.
IHS operates a large telecommunications infrastructure portfolio across Africa, with nearly 29,000 towers serving mobile network operators in several markets where MTN has a significant presence. Full or greater ownership of the infrastructure business would give MTN increased control over a strategically important part of its telecommunications value chain.
The transaction has already secured shareholder backing. IHS investors approved the deal at an extraordinary general meeting held in August, clearing another important step towards completion.
MTN said it expects the acquisition to close in the second half of 2026, provided the remaining regulatory approvals and other conditions are satisfied.
Nigeria Remains a Key Part of the Transaction
The FCCPC’s conditional approval is particularly significant because Nigeria is one of MTN’s largest and most important markets, while telecommunications towers form a critical part of the country’s digital infrastructure.
Tower companies such as IHS provide the physical sites that mobile network operators use to install antennas, radios and other network equipment. Their infrastructure supports the expansion and reliability of mobile voice and data services across the country.
MTN has maintained a long-standing commercial relationship with IHS. The group has historically relied on tower sale-and-leaseback arrangements as part of its broader capital management strategy, allowing it to transfer tower assets while continuing to use the infrastructure under lease arrangements.
The proposed acquisition represents a different approach, potentially bringing the remaining IHS business under MTN’s ownership and giving the group greater exposure to the infrastructure assets supporting its operations.
However, the FCCPC condition means MTN will ultimately have to reduce its ownership of the Nigerian component of IHS by as much as 30 per cent over time. The company has indicated that it is comfortable with the requirement and intends to comply with the terms of the approval.
For now, MTN said the transaction continues to progress and remains subject to the outstanding regulatory approvals and other conditions required for closing.