South African Competition Tribunal Grants Conditional Approval for Merger Between Canal+ and MultiChoice
The Competition Tribunal of South Africa has given the green light to the merger between CANAL+ SA and MultiChoice Group Limited, subject to a set of agreed-upon public interest conditions. This approval marks the final stage in the South African competition process.
The public interest conditions are designed to safeguard and promote local economic participation in the media and entertainment industry. They focus on job security, economic transformation supporting Black empowerment, local content development, substantial investment in South Africa, media plurality safeguards, and compliance with broadcasting regulations.
CANAL+ will acquire all remaining issued ordinary shares of MultiChoice Group at a cash consideration of ZAR 125.00 per share. The companies are expected to complete the mandatory offer before the long-stop date of 8 October 2025.
A key aspect of the conditions is the job protection provision, which imposes a legally binding prohibition on retrenchments of South African employees across Canal+, MultiChoice Group Limited, and MultiChoice (Pty) Ltd ("LicenceCo") for three years post-merger. The commitments also require continued investment in South African general entertainment and sports content, and broader community engagement.
The transaction requires the separation of MultiChoice’s broadcasting services arm into LicenceCo, complying with South African broadcasting regulations and maintaining broadcasting license requirements. The regulatory approval includes a structural arrangement, with the creation of LicenceCo, an independent entity majority-owned and controlled by Historically Disadvantaged Persons (HDPs). This addresses the restrictions imposed by the Electronic Communications Act of 2005 on foreign ownership of South African broadcasting licences.
The conditions also include commitments to support Black-owned suppliers and foster broad-based Black economic empowerment in line with South African regulations. Canal+ has pledged to invest approximately 26 billion rand (around $1.7 billion) over three years in South African initiatives aligned with public interest priorities.
Submissions by stakeholders such as Media Monitoring Africa emphasized conditions to safeguard media plurality and freedom of expression, asking for enhanced monitoring provisions to be included in the Tribunal’s conditions. The transaction remains subject to the agreed-upon public interest conditions and the approval by the Independent Communications Authority of South Africa (ICASA).
Calvo Mawela, CEO of MultiChoice Group, expressed optimism about the transaction and its potential to build a global media and entertainment company with Africa at its heart. Maxime Saada, CEO of CANAL+, shared similar sentiments, expressing excitement about the potential the transaction holds for all stakeholders, notably South African consumers, creative businesses, and the nation's sporting ecosystem.
The approved merger is a pivotal step in the companies' proposed transaction to create a pan-African media powerhouse. Once concluded, it is expected to create a true champion for Africa. The regulatory competition review process in South Africa has now concluded with this approval.
The agreed-upon public interest conditions aim to secure economic participation in the media and entertainment industry, including job security, economic transformation promoting Black empowerment, local content development, substantial investment in South Africa, media plurality safeguards, and compliance with broadcasting regulations. To adhere to broadcasting regulations, the transaction requires the separation of MultiChoice’s broadcasting services arm into an independent entity majority-owned and controlled by Historically Disadvantaged Persons, triggering investments in South African initiatives aligned with public interest priorities to the tune of approximately 26 billion rand from CANAL+.
