Competition Tribunal Approves Canal+’s USD 2.9 Billion MultiChoice Acquisition
South Africa’s Competition Tribunal has conditionally approved Canal+’s USD 2.9 billion (ZAR 55 billion) takeover offer for television broadcaster MultiChoice, a major step in African media consolidation. The French media giant will acquire all outstanding ordinary shares of MultiChoice, Africa’s largest pay-TV broadcaster, at ZAR 125 (~ USD 7) per share in an all-cash transaction.
The transaction necessitated navigating a series of regulatory approvals, highlighting the intricacies of cross-border media acquisitions in South Africa’s highly regulated broadcasting environment. The deal required clearances from multiple authorities, including the Competition Tribunal, the Johannesburg Stock Exchange (JSE), the Takeover Regulation Panel, the Independent Communications Authority of South Africa (ICASA), and the Financial Surveillance Department.
Public Interest Commitments and Local Content Protection
The Competition Tribunal’s approval comes with significant conditions that were announced earlier in the year, reflecting South Africa’s broader policy objectives for the broadcasting sector. These robust public interest commitments include job protection for South African employees for a minimum of three years following the merger implementation and continued funding for local general entertainment and sports content, ensuring that South African audiences maintain access to domestically produced programming that reflects local culture and interests.
The conditions also encompass enhanced support for historically disadvantaged persons (HDPs), aligning with South Africa’s ongoing transformation agenda. Additionally, the deal includes provisions for expanded participation of small and medium enterprises (SMMEs) in South Africa’s audio-visual sector, creating opportunities for local businesses to benefit from the enlarged entity’s operations and potentially promoting innovation within the creative industries ecosystem.
Ownership Restructuring to Meet Broadcasting Requirements
To comply with South Africa’s foreign ownership restrictions in broadcasting, the companies have implemented a refined restructuring arrangement through a newly established entity, MultiChoice (Pty) Ltd, referred to as “LicenceCo.” LicenceCo will operate independently and maintain majority ownership by historically disadvantaged persons, satisfying Icasa’s stringent requirement that broadcasting licensees maintain at least 30% black ownership.
In addition, the ownership structure has been carefully crafted, with equity distributed among Phuthuma Nathi, which holds a 27% economic interest, alongside Identity Partners Itai Consortium, Afrifund Consortium, and A Workers’ Trust (ESOP).
Leadership Perspectives on Strategic Significance
Maxime Saada, Chief Executive Officer of Canal+, characterised the approval as “a hugely positive step in our journey that brings together two iconic media and entertainment companies and creates a true champion for Africa.” His statement emphasises the potential of combining Canal+’s international expertise with MultiChoice’s deep African market knowledge and infrastructure. By adding MultiChoice’s 14.5 million subscribers to its own 8 million, Canal+ solidifies its position as Africa’s leading pay-TV provider.
Saada further noted that “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.”
Calvo Mawela, CEO of MultiChoice, described the development as a “significant milestone,” expressing optimism about the future combined entity. Mawela emphasised the forward-looking nature of the partnership, stating, “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.”
Market Consolidation Trends in African Broadcasting
This acquisition reflects broader consolidation trends within Africa’s pay-TV market, where scale and content diversity have become increasingly critical for competitive positioning. The deal creates a formidable combined entity that will dominate the African broadcasting landscape, potentially setting new standards for content quality, technological innovation, and market reach across the continent.
The transaction also signals the growing recognition of international media companies of Africa’s potential as a high-growth market for premium content services. Canal+’s substantial investment demonstrates confidence in the long-term prospects of African consumers’ appetite for quality entertainment and their willingness to pay for premium broadcasting services.
Furthermore, the acquisition will significantly alter the competitive landscape in Africa’s satellite TV market. The combined entity will possess unprecedented scale advantages, enabling more aggressive content acquisition strategies, enhanced technological capabilities, and expanded geographic reach across French and English-speaking African markets.