Canada-based global asset management firm Brookfield Asset Management is set to acquire American Tower’s operations in India for a reported $2.5 billion, making it the largest operator of telecom towers in the country, surpassing Indus Towers, reported news agency Reuters.
The deal, one of the largest telecom infrastructure deals in the country, marks American Tower’s exit from the Indian market. Meanwhile, it will be Brookfield’s third telecom acquisition in India over the past four years.
Brookfield currently manages approximately 157,000 telecom towers in India through its domestic associate, Data Infrastructure Trust, while American Tower operates around 77,000 towers, and Indus has approximately 193,000 towers.
The telecom tower companies are competing for business from India’s top three telecom giants. While Bharti Airtel and Reliance Jio continue to expand, Vodafone Idea faces operational and financial challenges.
Brookfield’s acquisition is expected to diversify Data Infrastructure Trust’s revenues and enhance its touchpoints with all mobile network operators in India, according to a statement from Brookfield. “The acquired sites are expected to diversify DIT’s (Data Infrastructure Trust) revenues and increase touch points with all mobile network operators in India,” Brookfield said in a statement.
According to the Reuters report, Brookfield’s domestic associate Data Infrastructure Trust reported revenues of Rs 111 billion ($1.33 billion) in the fiscal year ending March 2023, in comparison to Indus Towers’ Rs 283.8 billion.
The transaction is anticipated to conclude in the second half of 2024.