MTN’s R36bn IHS takeover gets Competition Commission nod – with strict conditions
MTN announced earlier this year that it had entered into an agreement to acquire the 75% of IHS shares it does not already own.
The Competition Commission has approved the proposed transaction between MTN, a global mobile network operator, and IHS Holding Limited, a global tower operator, subject to specific conditions. The acquisition, valued at $2.2bn (R36bn), involves MTN acquiring 75% of IHS shares it does not already own. The South African subsidiary of MTN, Sub-Merger Co, is the acquiring firm.
The Commission's approval is contingent on measures to protect jobs and promote ownership by historically disadvantaged persons, ensure customer rights are respected, and maintain fair access to tower infrastructure for all mobile network operators. It also requires MTN South Africa to not receive any preferential treatment and safeguards sensitive customer information.
The Commission aims to balance the transaction's benefits with the need for a competitive, dynamic, and inclusive economy. These conditions are intended to ensure the deal supports transformation, protects jobs, and preserves IHS's independence as an operational entity while preventing any unfair advantage to MTN South Africa. The final decision on the merger will be made by the Competition Tribunal.
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