South Africa Grants Approval to Canal+ MultiChoice Merger - Under Certain Terms
Canal+'s Takeover of MultiChoice Approved with Conditions by South Africa's Competition Commission
The Competition Commission of South Africa has recommended the approval of French media giant Canal+'s takeover of MultiChoice, the South African pay-TV broadcaster. The acquisition, valued at around R55 billion ($3 billion), could reshape Africa's media landscape.
The approval, however, comes with certain public interest conditions. These conditions aim to protect employment, promote local ownership and content, and sustain local industry growth while allowing the merger to proceed.
One of the key conditions is the protection of employees' terms and conditions of employment. Canal+, MultiChoice Group Limited, and its subsidiary MultiChoice (Pty) Ltd ("LicenceCo") must not retrench any employees in South Africa as a result of the merger for three years from the merger’s implementation date. There should be no adverse effects on the terms and conditions of employment for employees of the three entities in South Africa from the merger.
Another condition is the carving out of LicenceCo, the subsidiary holding MultiChoice’s broadcasting licence, from the transaction. It will not form part of the merger. This move supports the participation of firms controlled by historically disadvantaged persons and small, micro, and medium enterprises (SMMEs) in South Africa’s audiovisual industry.
The deal also mandates continued funding for local South African general entertainment and sports content, ensuring support and opportunities for local content creators. This condition aims to promote local content and maintain diversity in the media landscape.
The implementation of these conditions will be subject to reporting and monitoring mechanisms to ensure compliance and enforceability. The Tribunal's ruling will be based on the Competition Commission's recommendation.
Last year, Canal+ offered R125 ($6.97) per share for MultiChoice, a deal worth about R35 billion ($1.96 billion). Canal+ has been increasing its stake in MultiChoice over the years, signaling long-term ambitions to expand its footprint across Africa's media and streaming market.
The final ruling is pending from the Competition Tribunal. If approved, the takeover will bring Canal+ one step closer to fully acquiring MultiChoice, reshaping Africa's media landscape.
The approval of Canal+'s takeover of MultiChoice by South Africa's Competition Commission includes conditions that aim to protect business interests, such as ensuring no adverse effects on employees' terms and conditions of employment for three years, and carving out MultiChoice's subsidiary, LicenceCo, to encourage local ownership and support for small, micro, and medium enterprises (SMMEs) in the audiovisual industry. Additionally, the deal mandates continued finance for local South African general entertainment and sports content, aiming to promote local content and maintain diversity in the media landscape.
