South Africa Grants Approval for Canal+ MultiChoice Agreement - Under Specific Terms
Canal+, a pay-TV broadcaster owned by Vivendi, has made a significant move in the African media landscape with its proposed takeover of MultiChoice, South Africa's leading entertainment and media company. The offer, valued at approximately R35 billion ($1.96 billion), was made last year and has since been under review by the Competition Commission of South Africa.
The Competition Commission has recommended the approval of the acquisition, subject to certain public interest conditions. These conditions aim to protect local jobs, foster economic inclusion, ensure local content preservation, and align with South Africa’s broadcasting ownership laws.
Job Protection and Local Employment Stability
One of the key conditions is the job protection for South African employees for at least three years after the merger is implemented. This ensures local employment stability during the transition period.
Supporting Local Content and Cultural Representation
The conditions also emphasize the continued funding for local South African general entertainment and sports content. This move aims to support the production and availability of domestically relevant programming, maintaining cultural representation in the media landscape.
Economic Inclusion and Local Ownership Requirements
A reorganization will create a new entity, LicenceCo, which will hold MultiChoice’s South African broadcasting license. LicenceCo must be majority-owned by a consortium of historically disadvantaged persons (HDPs), including Phuthuma Nathi, Identity Partners, Afrifund, and a Workers’ Trust. This move promotes economic inclusion and local ownership.
Maintaining Media Plurality and Broadcasting Integrity
Stakeholders have emphasized the importance of maintaining media plurality and safeguarding broadcasting integrity. The conditions set by the Competition Commission aim to address these concerns.
Regulatory Oversight
The acquisition is also subject to regulatory oversight by multiple authorities, including the Competition Tribunal, Johannesburg Stock Exchange, Takeover Regulation Panel, ICASA (which still needs to approve the broadcasting license transfer), and the Financial Surveillance Department.
The offer values MultiChoice at around R55 billion ($3 billion), and if the public interest conditions are met, the acquisition could proceed. The final ruling on the takeover is pending from the Competition Tribunal. If approved, this acquisition could significantly reshape Africa's media landscape.
The conditions set by the Competition Commission, if met, could aid in preserving local jobs for at least three years post-merger, ensuring employment stability during the transition. Following this, the new entity, LicenceCo, must be majority-owned by a consortium of historically disadvantaged persons, promoting economic inclusion and local ownership in the business aspect.
