Shafaq News/ Leading Gulf telecom companies, Ooredoo, Zain Group, and TASC Towers Holding, have entered exclusive negotiations to merge their telecommunication tower assets to establish the largest tower company in the Middle East and North Africa region.

In a joint statement released Monday, the firms confirmed their intention to create a jointly owned independent tower company through a cash and share deal.

The proposed merger would involve approximately 30,000 telecommunication tower assets from Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan. The companies are actively working towards signing definitive agreements during this quarter.

As part of the deal, Ooredoo and Zain will maintain their existing active infrastructure, including wireless communication antennas, intelligent software, and intellectual property for managing their respective telecom networks. This strategic move is expected to result in a more efficient capital structure, leading to potential shareholder value uplift for Ooredoo Group and Zain Group.

However, Ooredoo's towers in Oman will follow a separate stand-alone process and won't be included in this particular consolidation.

Similar to other carriers in the region, Gulf telecom companies have been divesting from tower assets to streamline infrastructure costs and concentrate on advancing information and communications technology. Consequently, this consolidation has garnered attention from specialized tower operators seeking opportunities in new and high-growth markets.

The successful formation of the merged tower company would not only bolster the telecom landscape in the Middle East and North Africa but also reinforce efforts to optimize resources in the face of evolving industry dynamics.