Saudi regulator gives in-principle approval to Mobily, Zain towers merger

26 Mar 2021

Saudi Arabia’s Communications & IT Commission (CITC) has approved in-principle an application to merge wireless tower infrastructure submitted by cellcos Etihad Etisalat (Mobily) and Zain Saudi Arabia (Zain KSA) in a consortium with Raidah Investment Co (AlRaidah) and IHS KSA, reports Argaam. The merger plan, first announced in July 2020, seeks to unify tower infrastructure under a new Saudi-registered entity, Towers Company, which will operate under a licence for providing wholesale infrastructure services (category A, towers and masts). Mobily, Zain KSA and AlRaidah will collectively own the majority of Towers Company’s shares, with IHS taking a minority stake, while the new entity must fulfil regulatory requirements related to the licensing and acquisition of the towers of Mobily and Zain KSA in preparation for obtaining final approval from the CITC.