South African competition tribunal approves Canal+ takeover offer for MultiChoice

The Competition Tribunal of South Africa has approved Canal+’s takeover offer for African media giant MultiChoice Group.

Maxime Saada

The deal will see France-based Canal+, which already owns more than a third of MultiChoice, acquire the company’s remaining shares for ZAR125 each, equating to ZAR35bn (US$2bn).

The acquisition is expected to close by October 8 but is subject to agreed conditions, including a package of guaranteed public interest commitments. The package supports the participation of firms controlled by historically disadvantaged persons (HDPs), and small, micro and medium enterprises in the audiovisual industry in South Africa.

As part of the new business structure following the acquisition, MultiChoice Ltd, the entity that contracts with South African subscribers, will be carved out of the MultiChoice Group and become an independent entity, majority-owned and controlled by HDPs.

The package will also maintain funding for local South African general entertainment and sports content, to help support local content creators.

Maxime Saada, CEO of Canal+, called the approval from the competition tribunal “a hugely positive step forward in our journey to bring together two iconic media and entertainment companies and create a true champion for Africa.”

He added: “I’m excited about the potential this transaction unlocks for all stakeholders, notably South African consumers, creative businesses and the nation’s sporting ecosystem. The combined group will benefit from enhanced scale, greater exposure to high-growth markets and the ability to deliver meaningful synergies.”

Calvo Mawela, CEO of MultiChoice, said: “It [the approval] reflects the strength of our strategic vision and our ongoing commitment to continue uplifting the communities where we operate. 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.”