Canal+ gets green light for R53 billion takeover of MultiChoice

French media giant Canal+ has secured approval from South Africa’s Competition Tribunal to move forward with its multibillion-rand acquisition of MultiChoice, marking one of Africa’s biggest media mergers.

Valued at roughly R53 billion, the deal will give Canal+ full ownership of MultiChoice, the company behind DStv and Showmax.

Although the Competition Tribunal’s approval is a key step, the merger still requires authorisation from other regulators, including Icasa, the JSE, the Takeover Regulation Panel, and the Financial Surveillance Department.

“It is a hugely positive step forward in our journey to bring together two iconic media and entertainment companies,” said Canal+ in a statement.

Public interest commitments included

As part of the approval, the Tribunal imposed conditions designed to protect South African interests:

• Ongoing investment in local sports and general entertainment content.
• Measures to support Historically Disadvantaged Persons (HDPs) and SMEs in the local broadcasting sector.
• Guarantees to maintain South Africa’s influence over content and access decisions through the continued independence of MultiChoice (Pty) Ltd, which services local subscribers.

“We look forward to executing the remaining processes and to building something extraordinary – a global media and entertainment company with Africa at its heart,” said Calvo Mawela, CEO of MultiChoice Group.

What’s next?

Although Canal+ has secured approval, it and MultiChoice still need to address legal and policy challenges, including South Africa’s restrictions on foreign ownership of broadcasters.

To meet these requirements, the companies will separate MultiChoice’s South African operations and manage them independently.

Both companies have assured customers that services will continue uninterrupted during the remaining approval process.