South Africa’s Competition Commission has recommended conditional approval for France’s Canal+‘s takeover of MultiChoice Group, marking a major milestone in the $1.96 billion deal announced on Wednesday.
This approval clears a significant regulatory hurdle while imposing conditions to protect public interest and competition in the broadcasting sector.
SA approves MultiChoice merger with job, local content guarantees
Although the Commission stressed that the combination would not significantly reduce competition, it imposed several requirements to allay public fears. The parties notably agreed to a three-year post-merger ban on layoffs, guaranteeing MultiChoice workers’ jobs.
Furthermore, historically disadvantaged persons (HDPs) and workers will hold the majority of the broadcasting unit, supporting South Africa’s efforts to redress past inequalities.
The merged entity will continue corporate social responsibility initiatives, including skills development in the audiovisual industry and sports development programs.
Supplier development commitments require significant investment in local audiovisual content, promotion of South African content in new markets, and procurement from HDPs and small, medium, and micro enterprises (SMMEs).
These commitments, valued at approximately 26 billion rands over three years, highlight a strong focus on local economic empowerment.
Canal+ seeks complete Multichoice control
Canal+ currently owns about 45 percent of MultiChoice and offered 125 rand per share for the remainder. MultiChoice operates in 50 sub-Saharan African countries with 19.3 million subscribers, while Canal+ has a presence in 25 countries with 8 million subscribers.
The deal aims to create a global media and entertainment company centered on Africa, expanding Canal+’s footprint significantly.
MultiChoice announced a restructuring earlier this year to satisfy regulatory requirements, separating its broadcasting license-holding unit, LicenceCo, to operate independently.
This move was part of strategic efforts to address competition concerns and public interest issues raised during the merger review process.
The deal awaits final approval from South Africa’s Competition Tribunal, with Canal+ targeting completion by early October 2025. MultiChoice’s share price rose by over 5 percent following the announcement, reflecting positive investor sentiment.
This landmark merger combines two of Africa’s largest pay-TV and streaming operators under one umbrella, promising to reshape the continent’s audiovisual industry while maintaining local content, employment, and empowerment commitments.