South Africa’s Competition Tribunal has approved Canal+’s 35-billion-rand ($2 billion) takeover offer for TV broadcaster MultiChoice, subject to agreed conditions, as announced by both companies. This deal could significantly reshape Africa’s media landscape, initiating a consolidation process aimed at competing with global streaming giants like Netflix.
The acquisition is part of Canal+’s strategy to expand in Africa, particularly in English speaking regions. This deal will provide MultiChoice with essential capital to enhance local content and innovation. Maxime Saada, CEO of Canal+, stated, “The combined group will benefit from enhanced scale, greater exposure to high-growth markets, and the ability to deliver meaningful synergies.”
Canal+ made a firm offer last year of 125 rand per MultiChoice share it does not own, valuing the company at approximately 55 billion rand. The Competition Commission indicated that the transaction would not significantly lessen competition.
The agreed conditions include a package of public interest commitments to support firms controlled by Historically Disadvantaged Persons and Small, Micro, and Medium Enterprises in South Africa’s audio-visual industry. These commitments are projected to be worth about 26 billion rand over the next three years.
The companies emphasized that this package would maintain funding for local South African general entertainment and sports content, providing local content creators with a robust foundation for future success.
In order to adhere to regulations that restrict foreign ownership of South African broadcasting licenses to 20%, MultiChoice Group will establish a new independent entity for its domestic unit, which holds the broadcasting license. This new entity will be majority owned and controlled by Historically Disadvantaged Persons.
