Television network Canal+ successfully overcomes significant obstacle in their endeavor to acquire Multichoice
The South African Competition Tribunal has given its approval for French pay-TV broadcaster Canal+ to acquire Multichoice, a leading South African broadcasting company, in a deal valued at approximately $3 billion (R55 billion). This announcement marks a significant milestone and a major step forward for both companies.
The transaction, which is expected to be completed before October 8th, 2025, received a positive recommendation from South Africa's Competition Commission in May. Calvo Mawela, CEO of MultiChoice Group, expressed his excitement about the potential the transaction unlocks for all stakeholders, while Maxime Saada, CEO of Canal+, expects the transaction to be concluded in line with the previously communicated timeline.
To comply with South African broadcasting ownership laws, the acquisition will involve the creation of a new separate entity called LicenceCo. This entity will hold MultiChoice’s South African broadcasting licence and will be majority-owned by a consortium of historically disadvantaged persons (HDPs), including groups like Phuthuma Nathi, Identity Partners, Afrifund, and a Workers’ Trust. MultiChoice will retain a 49% economic interest and a 20% voting stake in LicenceCo.
In addition to these structural changes, the deal also includes several conditions designed to protect local interests and comply with South African laws. For instance, Canal+, MultiChoice Group Limited, and LicenceCo commit to not retrenching any employees in South Africa as a direct result of the merger for three years from the deal’s implementation. They also undertake that there will be no negative changes to employees’ terms and conditions of employment due to the merger.
The conditions also aim to promote economic inclusion and the preservation and promotion of local broadcasting integrity. This includes public interest conditions to promote ownership and economic participation by historically disadvantaged persons (HDPs) and workers, safeguarding and advancing local empowerment policies.
Moreover, the parties have committed to maintaining or increasing funding for local South African general entertainment and sports content. They also pledge ongoing support and opportunities for South African content creators.
The South African Competition Tribunal's approval comes after it enhanced the conditions recommended by the Competition Commission for enforceability and monitoring. The deal still requires final approval from ICASA, South Africa’s broadcasting regulator, before closing can occur.
The acquisition is expected to start building a global media and entertainment company with Africa at its heart. The combined Group is expected to benefit from enhanced scale, greater exposure to high-growth markets, and the ability to deliver meaningful synergies. According to Canal+, the deal will maintain funding for local South African general entertainment and sports content, making it an important next step for Multichoice to realize its full potential.
- The financial implications of this acquisition extend beyond the two businesses, as the new entity is expected to commit to maintaining or increasing funding for local South African general entertainment and sports content.
- In the realm of business and entertainment, the proposed merger between Canal+ and Multichoice will aim to promote economic inclusion, safeguard local empowerment policies, and provide ongoing support and opportunities for South African content creators.
