South Africa’s Competition Tribunal has approved Canal+’s 35 billion rand ($2 billion) takeover offer for TV broadcaster MultiChoice, subject to agreed conditions.
The deal could kick off Canal+’s African expansion and consolidation process aimed at countering global streaming giants such as Netflix, particularly in English-speaking regions. For MultiChoice, the deal provides much-needed capital to support its local content and innovation.
“The combined group will benefit from enhanced scale, greater exposure to high-growth markets and the ability to deliver meaningful synergies,” Maxime Saada, CEO of CANAL+, said in a statement.
Calvo Mawela, CEO of MultiChoice Group added: “The announcement marks a significant milestone and is a major step forward for both companies. It reflects the strength of our strategic vision and our ongoing commitment to continue uplifting the communities where we operate.”
Canal+ Multichoice Takeover Process
Canal+ made an offer of 125 rand in cash per MultiChoice share that it does not own last year, valuing MultiChoice at about 55 billion rand. The company had earlier held 45% multichoice shares.
The agreed conditions include a package of guaranteed public interest commitments proposed by the parties. The package supports the participation of firms controlled by Historically Disadvantaged Persons and Small, Micro and Medium Enterprises in the audio-visual industry in South Africa.
“This package will maintain funding for local South African general entertainment and sports content, providing local content creators with a strong foundation for future success,” the companies said.
In an effort to overcome regulations that prohibit foreign entities from owning more than 20% of a South African broadcasting licensee, MultiChoice Group will carve out its domestic unit which holds its broadcasting license into a new independent entity, majority owned and controlled by Historically Disadvantaged Persons.
