France-based media giant Canal+ has received formal approval from South Africa’s Competition Tribunal to proceed with its acquisition of MultiChoice, a landmark deal valued at approximately R53 billion (about $3 billion). This development marks a significant milestone in the consolidation of two major players in the global media and entertainment industry.
The Tribunal’s approval is subject to a set of agreed-upon conditions, which both parties have committed to uphold. These conditions are designed to safeguard public interest and ensure that the transaction delivers tangible benefits to South Africa’s broadcasting and content creation sectors.
Among the most notable conditions is a comprehensive public interest package. This includes:
- Support for Historically Disadvantaged Persons (HDPs) and Small, Micro, and Medium Enterprises (SMMEs) in South Africa’s audio-visual industry.
- Sustained investment in local content, particularly in general entertainment and sports programming.
- Preservation of employment and promotion of skills development within the local media ecosystem.
Canal+ welcomed the Tribunal’s decision, stating:
The approval by South Africa’s Competition Tribunal marks the final stage in the South African competition process and clears the way for us to conclude the transaction in line with our previously communicated timeline. It is a hugely positive step forward in our journey to bring together two iconic media and entertainment companies and create a true champion for Africa.
While the Competition Tribunal’s approval is a major step forward, the transaction is not yet fully complete. Several additional regulatory and procedural hurdles remain, including:
- Approval from the Financial Surveillance Department of the South African Reserve Bank.
- Clearance from the Johannesburg Stock Exchange (JSE).
- Consent from the Takeover Regulation Panel.
- Authorization from the Independent Communications Authority of South Africa (ICASA).
Each of these steps involves complex legal and regulatory considerations, particularly around foreign ownership restrictions in South Africa’s broadcasting sector.
To comply with these requirements, the transaction structure includes a strategic carve-out:
MultiChoice (Pty) Ltd, the entity that holds contracts with South African subscribers, will be separated from the broader MultiChoice Group and operate independently. This move is intended to align with local ownership laws while allowing the broader merger to proceed.
MultiChoice Group CEO Calvo Mawela described the Tribunal’s approval as a pivotal moment:
The announcement marks a significant milestone and is a major step forward for both companies. We look forward to executing the remaining processes required to complete the transaction and to start building something extraordinary: a global media and entertainment company with Africa at its heart.
Both Canal+ and MultiChoice have assured customers that the ongoing regulatory processes will not disrupt services or subscriber experiences. The companies remain focused on delivering high-quality content and expanding their reach across the African continent.
