South Africa’s Competition Commission has recommended that France’s Canal+ takeover of pay-TV broadcaster MultiChoice Group be approved with conditions, marking a key milestone in the deal on Wednesday.
Should the transaction receive final approval, it would significantly enhance Canal+’s expansion into Africa, particularly within English-speaking regions.
The French media company, which separated from its parent Vivendi in December, made a firm offer last year to acquire the remaining MultiChoice shares for 125 rand each, valuing the deal at approximately 35 billion rand ($1.96 billion).
The Competition Commission stated that the acquisition would not substantially harm competition, but it recommended conditional approval due to MultiChoice’s significant role in South Africa’s entertainment sector and to address concerns raised by various stakeholders.
By 0900 GMT, MultiChoice shares were up 5.33%.
“This marks a major step in our vision to establish a global media powerhouse with Africa at its core,” said Canal+ CEO Maxime Saada.
The Commission also noted that the merger parties have committed to public interest initiatives valued at approximately 26 billion rand over the next three years. These include a commitment to not lay off employees for three years and ensuring that the majority of LicenceCo’s shareholders are historically disadvantaged persons (HDPs) and employees. Additionally, they will continue programs in skills development and sports.
In order to navigate South Africa’s regulations, which limit foreign ownership of broadcast licenses to 20%, MultiChoice has established a new independent entity, LicenceCo, which will hold the broadcasting license.
The merged entity has also pledged to invest in local audiovisual content, promote South African media abroad, and prioritize procurement from HDPs and small enterprises.
The deal now awaits final approval from the Competition Tribunal.