South African Competition Tribunal Grants Conditional Approval to Merger Between CANAL+ and MultiChoice
The Competition Tribunal of South Africa has given its approval to the merger between CANAL+ SA and MultiChoice Group Limited, subject to a set of agreed-upon public interest conditions. This significant step marks the final stage in the South African competition process and brings the two media giants one step closer to creating a powerful media entity in Africa.
The approved public interest commitments are designed to ensure compliance with local legislation, promote local economic development, and safeguard employment. Key conditions include employment protections, ownership and structural arrangements, support for historically disadvantaged persons (HDPs) and small, medium, and micro enterprises (SMMEs) in the audio-visual industry, local content funding, and the promotion of Black-owned suppliers and South African operations.
In the employment protections clause, Canal+, MultiChoice Group Limited, and MultiChoice (Pty) Ltd (referred to as LicenceCo) have committed not to retrench any employees in South Africa due to the merger for three years from the merger’s implementation date. They also pledge that the terms and conditions of employment of their employees will not be adversely affected as a result of the merger.
LicenceCo, which holds MultiChoice’s broadcasting licence and conducts broadcasting operations, will be carved out before the merger's implementation and will not be part of the transaction. MultiChoice (Pty) Ltd will become an independent entity majority owned and controlled by HDPs, complying with South African laws on foreign ownership and control of broadcasting licences.
The approved merger package guarantees the participation of firms controlled by HDPs and SMMEs in South Africa's audio-visual sector. Local content funding will continue, providing support for South African creators and sustaining the local content ecosystem. The conditions also require the promotion of Black-owned suppliers and that South African operations remain central to the new merged entity’s future, thereby supporting broader economic benefits beyond shareholders.
The Competition Tribunal emphasized enforceability and monitorability, putting in place reporting and monitoring mechanisms to oversee compliance with these commitments. The transaction is expected to be concluded in line with the previously communicated timeline, with CANAL+ acquiring all remaining issued ordinary shares of MultiChoice Group at a cash consideration of ZAR 125.00 per share.
Maxime Saada, CEO of CANAL+, expressed excitement about the potential the transaction holds for all stakeholders, including South African consumers, creative businesses, and the nation's sporting ecosystem. The merger is a significant step in the creation of a pan-African media powerhouse and a positive development for the media industry in Africa.
However, the merger still awaits clearance by the Independent Communications Authority of South Africa (ICASA), which regulates broadcasting licences and will make the final decision to allow the transfer of the broadcasting licence to LicenceCo. The companies are on track to complete the mandatory offer before the long-stop date of 8 October 2025. Broader community engagement is another commitment approved by the Tribunal.
These conditions aim to balance approving the merger while safeguarding employment, supporting the empowerment of historically disadvantaged groups, fostering local content, and ensuring South African operations are not sidelined in the new corporate structure. The public interest commitments approved by the Tribunal aim to safeguard and promote local economic participation.
[1] Competition Tribunal of South Africa, "Public Interest Conditions for the Merger between CANAL+ SA and MultiChoice Group Limited", 2025. [2] MultiChoice Group Limited, "Announcement of Public Interest Conditions by the Competition Tribunal", 2025. [3] Independent Communications Authority of South Africa, "Regulatory Framework for the Transfer of Broadcasting Licences", 2025. [4] Department of Trade, Industry and Competition, "Promotion of Local Content in the Media Sector", 2021.
- The public interest commitments, approved by the Competition Tribunal, aim to ensure that the broadcast industry, finance, and business of the new entity comply with local legislation, promote local economic development, and safeguard employment, particularly for historically disadvantaged persons and small, medium, and micro enterprises in the audio-visual industry.
- The merger conditions also require the new entity to continue local content funding, promote Black-owned suppliers, and ensure South African operations remain central to its future, thereby supporting broader economic benefits and complying with the South African laws on foreign ownership and control of broadcasting licences.
