MTN Group has cleared a major regulatory hurdle in its proposed $2.2 billion acquisition of the remaining stake in IHS Towers, but the telecom giant will have to sell 30% of its Nigerian tower business to local investors.
The Federal Competition and Consumer Protection Commission (FCCPC) and Nigerian Communications Commission (NCC) have approved the transaction, according to MTN Group’s first-half 2026 results.
The approval moves MTN closer to taking full control of IHS Towers, one of Africa’s largest independent telecommunications infrastructure companies.
MTN currently owns about 25% of IHS Towers and agreed in February to acquire the remaining 75% for $2.2 billion in cash. The transaction gives IHS an enterprise value of approximately $6.2 billion.
“The transaction has received approval from various regulators, including Nigeria’s Federal Competition and Consumer Protection Commission,” MTN said.
MTN must sell 30% of IHS Nigeria
MTN will be required to sell a 30% stake in IHS Nigeria to Nigerian investors on commercial terms.
“MTN will sell-down 30% of IHS Nigeria to local Nigerian investors, on an arms-length commercial basis and subject to market conditions,” the company said.
The condition addresses concerns that MTN’s acquisition could give it excessive control over telecom tower infrastructure used by rival operators.
IHS operates shared telecommunications infrastructure that supports mobile network operators, including MTN and its competitors. This makes the Nigerian portion of the transaction particularly significant for competition in the country’s telecoms market.
The Federal Government had previously indicated that it would examine the acquisition because of its potential implications for competition, investment and the long-term sustainability of Nigeria’s telecoms sector.
The regulatory review also came amid concerns from industry stakeholders over MTN gaining greater control over infrastructure that competitors rely on.
Why the deal matters
MTN has described the acquisition as part of its Ambition 2030 strategy, under which digital infrastructure and connectivity are expected to play a larger role in the group’s growth.
The company had previously said bringing the towers back under its control would strengthen its strategic and financial position as demand for digital infrastructure increases.
IHS shareholders approved the transaction at an extraordinary general meeting on August 4, 2026, satisfying another key condition for the deal. The transaction remains subject to applicable regulatory and closing conditions in relevant markets.
If completed, the acquisition will bring MTN’s tower infrastructure closer to its core operations while giving the group greater control over assets it previously leased from IHS.
MTN also plans $375.5m share buyback
The IHS transaction comes as MTN Group moves to return more capital to shareholders.
MTN plans to spend about $375.5 million to buy back up to 31 billion of its own shares from the open market.
The company said the programme forms part of its shareholder remuneration framework under Ambition 2030, which targets returning between 40% and 60% of equity free cash flow to shareholders through dividends and share buybacks.
By reducing the number of shares in circulation, a buyback can increase earnings per share for remaining shareholders, assuming earnings remain unchanged.
MTN said it would continue assessing the programme based on whether the buyback creates value for shareholders.
The IHS acquisition and share repurchase therefore form part of a broader strategy by MTN to strengthen its infrastructure position while improving returns to investors.
