Ooredoo Group signed an agreement with Zain Group and TASC Towers to create what it branded as the largest tower company in the MENA region, with a combined enterprise value of $2.2 billion.

The proposed transaction was agreed five months after talks began and will involve establishing an entity comprising nearly 30,000 towers in Qatar, Kuwait, Jordan, Tunisia, Iraq and Algeria.

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Ooredoo and Zain said the deal is a major milestone in their respective strategies to evolve into “smart telcos”, and the business is expected to achieve run-rate revenue of close to $500 million and EBITDAal of more than $200 million annually.

The pair will each hold a 49.3 per cent stake and retain their respective infrastructure, with TASC founders taking the remainder through holding company Digital Infrastructure Assets.

TASC will also manage the operations of the business and offer passive infrastructure-as-a-service to other operators across the region.

The deal is subject to regulatory approval and is expected to complete in 2024.