MultiChoice deal gets the green light
The Competition Commission has recommended that the Competition Tribunal approve Canal+’s acquisition of MultiChoice, with some strings attached.
This recommendation follows the commission’s investigation of the large merger notification received on 30 September 2024.
This comes after French media giant Canal+ made an offer to buy DStv and Showmax-owner MultiChoice in 2024.
Canal+ is an international media firm that produces, commissions, and supplies audiovisual content, provides advertising services, develops video games, and publishes books.
Its offer to buy MultiChoice comes as Canal+ is looking to expand its reach in the African market, where MultiChoice already has significant influence.
Prior to the Competition Commission’s recommendation, many were concerned that the proposed merger of the companies would face too many regulatory hurdles to get approved.
This is mostly because Canal+ is a foreign company, and certain South African regulations limit foreign control over commercial broadcasting services.
Specifically, the Electronic Communications Act limits foreign control of commercial broadcasting services through strict ownership rules.
This legislation states that a foreigner may not, whether directly or indirectly, exercise control over a commercial broadcasting licensee.
In addition, not more than 20% of the directors of a commercial broadcasting licensee may be foreigners.
However, MultiChoice seemed to have found a workaround for this limitation by introducing a new structure for its South African post-merger.
The part of its business that currently holds the broadcasting licence in South Africa and the entity which contracts with South African subscribers will be carved out as an independent entity known as LicenceCo.
The remainder of MultiChoice’s video entertainment assets will remain part of the MultiChoice Group.
The conditions
In granting its approval, the Competition Commission said the proposed transaction is unlikely to substantially lessen or prevent competition in any market.
However, given Multichoice’s critical role in South Africa’s broader audiovisual ecosystem and to address public interest concerns, the commission attached a number of conditions to its recommendation.
These conditions include addressing employment concerns, increasing the shareholding of historically disadvantaged persons (HDPs) and workers in Orbicom and LicenceCo, supplier development commitments, the merged entity’s continued operation from South Africa, plurality of television news and export promotion.
In addition, MultiChoice and Canal+ have agreed to a moratorium on retrenchments for a period of three years following the merger implementation date.
The merger parties have also committed that the majority of LicenceCo’s shareholders will be HDPs and workers.
They also agreed to continue certain corporate social responsibility initiatives, such as skills development in the audiovisual industry and sports development.
Canal+ has undertaken that MultiChoice will remain incorporated and headquartered in South Africa, endeavour to promote exports, and will pursue a secondary inward listing on the JSE.
Post-merger, the companies will also make supplier development commitments that include spending on local audiovisual content, promoting South African audiovisual content in new markets, and procuring from HDPs and small, medium, and micro enterprises (SMMEs).
Finally, the parties have agreed that LicenceCo will continue to procure local news content for DStv and will ensure the diversity of the news content it broadcasts.
The total value of all the public interest commitments advanced by the merger parties is projected to be approximately R26 billion over the next three years.
“The commission is satisfied that the conditions attached to this merger sufficiently address the concerns raised during the investigation,” Deputy Commissioner Hardin Ratshisusu explained.
Canal+ CEO Maxime Saada said this approval is a major step forward in the company’s ambition to create a global media and entertainment company with Africa at its heart.
“We are committed to investing in local content and supporting South Africa’s creative and sports ecosystems,” he said.
“We strongly believe that this transaction is positive for South Africa, providing consumers with greater choice and Africa with a true entertainment champion.”
MultiChoice CEO Calvo Mawela added that the company is looking forward to closing the transaction, not only for the benefit of shareholders, but also for the viewing public and the multiple industries that depend on MultiChoice.
“We will continue to cooperate with all regulatory authorities towards a timely conclusion of this important process,” he said.
Important dates
In a recent press statement, MultiChoice outlined the relevant dates of the Canal+ transaction, with the long stop date having been extended to 8 October 2025.
| Record date for MultiChoice Shareholders who are eligible to receive the Combined Circular | Friday, 24 May 2024 |
| Posting date of the Combined Circular | Tuesday, 4 June 2024 |
| SENS and ANS announcement confirming: (i) posting of the Combined Circular; and (ii) publication of the Combined Circular on the websites of Canal+ and MultiChoice | Tuesday, 4 June 2024 |
| The Offer opens at 09:00 on the Opening Date | Wednesday, 5 June 2024 |
| The Offer becomes wholly unconditional by no later than (subject to note 4 in the Combined Circular) | Wednesday, 8 October 2025 |
| Finalisation date: Offer to be announced as being unconditional in all respects, subject to receipt of TRP compliance certificate (within one Business Day after the Offer becomes unconditional in all respects) | Thursday, 9 October 2025 |
| First payment date: payment of Offer Consideration to Offerees who have accepted the Offer by the finalisation date (see note 13 of the Combined Circular) | Friday, 17 October 2025 |
| Last day to trade in MultiChoice Shares in order to participate in the Offer (three Business Days prior to the Closing Date) | Tuesday, 21 October 2025 |
| MultiChoice Shares trade “ex” the Offer (two Business Days prior to the Closing Date) | Wednesday, 22 October 2025 |
| Record Date in order to participate in the Offer at 12:00 on | Friday, 24 October 2025 |
| The Offer closes at 12:00 on (Closing Date) | Friday, 24 October 2025 |
| Payment of Offer Consideration to Offerees who accept the Offer after the finalisation date, but prior to the Closing Date | Monday, 27 October 2025 |
| Results of the Offer to be released on SENS and the ANS on (first Business Day after the Closing Date) | Monday, 27 October 2025 |
| Results of the Offer to be published in the South African press on (second Business Day after the Closing Date) | Tuesday, 28 October 2025 |
Comments