The French media behemoth Canal+ has been granted permission by the Competition Tribunal of South Africa to acquire MultiChoice Group for $2 billion (35 billion rand).
The approval, which was made public on Wednesday, is subject to requirements to resolve issues of public interest and guarantee adherence to South African broadcasting laws.
The South African media behemoth was valued at about $3 billion (55 billion rand) when Canal+, a pay-TV company that split off from Vivendi in December 2024, offered 125 rand per share for MultiChoice shares it did not already own.
The agreement, which has been in place since early 2024, is a calculated step by Canal+ to increase its presence in English-speaking African markets while giving MultiChoice funding to support local innovation and content.
Canal+’s expansion in Africa via MultiChoice’s acquisition
The acquisition has the potential to establish a dominant force in Africa’s pay-TV and streaming markets.
With operations in 50 sub-Saharan nations and 19.3 million subscribers, MultiChoice is the biggest pay-TV provider on the continent.
Its portfolio comprises production assets, streaming services like Showmax, and linear channels. With eight million subscribers, Canal+ is already a significant player in 25 African nations and wants to use MultiChoice’s infrastructure to take on international streaming behemoths like Netflix and Amazon Prime.
In a statement, Maxime Saada, CEO of Canal+, said, “This is a major step forward in our ambition to create a global media and entertainment company with Africa at its heart.”
He emphasised the deal’s potential to benefit South African consumers, creative businesses, and the nation’s sporting ecosystem.
Like Saada, MultiChoice Group CEO Calvo Mawela referred to the approval as a “significant milestone.”
He emphasised how the agreement helped MultiChoice maintain its financial stability in the face of demanding operating conditions brought on by competition from international streamers.
“We look forward to building a global media and entertainment company with Africa at its core,” Mawela added.
Conditions for acquisition
The Competition Commission of South Africa made a favourable recommendation in May 2025, which was followed by the Competition Tribunal’s approval.
Although the Commission imposed conditions to address concerns about the public interest, it determined that the deal was unlikely to harm competition.
Among these is a three-year commitment of $1.4 billion (26 billion rand) to support corporate social responsibility programs like sports development, skills training, and local content.
MultiChoice will separate its domestic division into a new company, LicenceCo, to comply with South African laws restricting foreign ownership of broadcasting licenses to 20 per cent.
Historically Disadvantaged Persons (HDPs) and employees will own the majority of this independent business, guaranteeing adherence to regional regulations.
The parties have also agreed to increase the involvement of small businesses and HDP-controlled companies in the audiovisual sector and to refrain from layoffs for three years.
Final approval to complete acquisition
The deal still needs final approval from the Independent Communications Authority of South Africa (ICASA) for the transfer of MultiChoice’s broadcasting license to LicenceCo, even though the Competition Tribunal’s approval removes a significant obstacle.
To comply with these regulations, Canal+ extended the transaction deadline to March 8, 2025, instead of October 8, 2025. The businesses are still on course to fulfil this deadline.
Canal+ controls 40% of MultiChoice
Since 2024, Canal+ has gradually grown its ownership of MultiChoice, now controlling more than 40 per cent of the business. After exceeding the 35 per cent threshold, it triggered a mandatory buyout offer under South African regulations.
Prior to Canal+’s initial approach in February 2024, MultiChoice’s share price was 67 per cent lower than the 125 rand per share offer.
Following the Competition Commission’s recommendation in May, MultiChoice’s shares increased by 5.33 per cent, indicating that the deal has sparked market optimism.
Industry watchers view the purchase as a calculated consolidation to challenge the dominance of international streaming services.
The combined company could improve local content production and enter new markets by fusing MultiChoice’s wide reach with Canal+’s resources.
Fierce competition from Netflix, TikTok, Amazon Prime
Due to competition from TikTok, Netflix, and Amazon Prime, MultiChoice has experienced significant difficulties, including a 40-year high in operating difficulties.
The business has also struggled with piracy, estimating that two million pirated views have cost it billions of dollars.
Canal+’s investment is anticipated to stabilise MultiChoice’s finances and spur innovation, especially in its streaming service Showmax.
The growth of Canal+ in Africa is consistent with its overarching plan.
To strengthen its position as a content aggregator, the company recently teamed up with Netflix to bundle offerings across 24 Francophone African countries.
Its dominance in the local media industry may be further cemented by this acquisition.
Goal to secure ICASA’s approval
Securing ICASA’s approval and putting the new LicenceCo structure into place will be the main priorities as Canal+ and MultiChoice strive to complete the deal by October 8, 2025.
The deal promises increased scale, investment, and worldwide competitiveness, marking a turning point for Africa’s media sector.
If the regulatory and public interest commitments are fulfilled, the agreement may mark the beginning of a new era of local content and innovation for South African viewers and creators.
