MTN Nigeria has secured an Approval-in-Principle (AiP) from the Nigerian Communications Commission for its proposed acquisition of IHS Towers’ Nigerian business, but the $2.2 billion transaction still needs to clear a set of regulatory conditions before final approval.
The NCC granted the approval in mid-July, subject to safeguards covering corporate governance, existing commercial contracts, market access and future investment, the regulator said.
The approval is therefore not a final green light. The NCC said it will issue final clearance only after confirming that MTN has complied with the conditions attached to the AiP.
Among the most significant conditions is a requirement that the transaction must not give MTN exclusive rights over IHS infrastructure. The regulator also said existing contracts must not be amended as a result of the acquisition.
That condition is particularly important because IHS operates thousands of towers used by MTN and competing operators. Preventing changes to existing agreements and exclusivity reduces the risk that MTN’s ownership of the infrastructure could make it harder or more expensive for rivals to access tower sites.
