The Ghanaian subsidiaries of Millicom and Airtel are on course to merge, with the proposal receiving conditional approval from the country’s National Communications Authority (NCA).
The deal will allow Tigo and Airtel to compete more effectively with MTN and Vodafone. While the conditions of the approval have not been made public, more information will be disclosed following the closing of the deal.
Millicom and Airtel struck their original agreement in March this year, and have stated that they will split ownership and governance of the joint entity in the hopes that their partnership will result in the emergence of a “strong number two” competitor in Ghana.
At the end of Q2 2017, Airtel and Tigo respectively had 4.7 million and 4 million connections, placing them both squarely behind market leader MTN, which has around 20.3 million connections in Ghana. However, even their combined subscriber bases would not edge the merged entity ahead of number two Vodafone, which has around 8.9 million connections.