Canal+ (CAN.L) to acquire MultiChoice Group (MCGJ.J), marking a major step in the French media giant’s African expansion.
If fully approved, the deal will strengthen Canal+’s presence in English-speaking African markets.
Canal+ MultiChoice Offer
Canal+, which spun off from Vivendi (VIV.PA) in December, made a firm offer of 125 rand per MultiChoice share, valuing the deal at 35 billion rand ($1.96 billion).
The Commission found that the merger would not harm competition but imposed conditions to address concerns about MultiChoice’s role in South Africa’s entertainment industry.
Key Conditions for Approval
- No job cuts for three years.
- LicenceCo, a new independent entity, will hold MultiChoice’s broadcasting license.
- Majority ownership of LicenceCo will go to historically disadvantaged persons (HDPs) and workers.
- Continued investment in local content, skills development, and sports initiatives.
By 09:00 GMT, MultiChoice shares had risen 5.33% following the announcement.
Public Interest Commitments
The merger parties pledged 26 billion rand in public interest investments over the next three years, including:
- Local content production and export promotion.
- Procurement from HDPs and small businesses.
- Corporate social responsibility programs.
Regulatory Challenges & Next Steps for Canal+
South African law limits foreign ownership of broadcasting licenses to 20%, prompting MultiChoice to restructure its domestic unit into LicenceCo.
The deal now awaits final approval from the Competition Tribunal.
If successful, Canal+ will solidify its footprint in Africa, transforming the region’s pay-TV landscape.
