FCCPC Imposes Structural Remedies In MTN/IHS Acquisition

The Nigerian Federal Competition and Consumer Protection Commission (FCCPC) has conditionally approved MTN Group Limited’s acquisition of IHS Holding Limited, subject to remedies. The FCCPC approved the acquisition on the condition that MTN must sell down 30 percent of IHS’s Nigerian business to local Nigerian investors at market prices over time.

The decision to impose remedies was driven by the relationship between the parties. IHS provides telecommunications tower infrastructure in Nigeria to MTN and other mobile network operators. Following the transaction, MTN will move from being a minority shareholder and customer of IHS to controlling the business. The FCCPC’s decision seeks to mitigate negative impacts on competition, including foreclosure.