South Africa Grants Approval for Canal+ MultiChoice Agreement, Imposes Terms
Canal+ Takeover of MultiChoice Approved by South Africa's Competition Commission, Subject to Conditions
In a significant move for South Africa's media landscape, the Competition Commission has approved the takeover of MultiChoice by pay-TV broadcaster, Canal+. The approval, however, comes with a set of conditions aimed at supporting local content production, skills development, and corporate social responsibility initiatives.
Canal+, owned by Vivendi, has made a R125 per share offer for MultiChoice, a deal worth approximately R35 billion. If approved, the acquisition would be valued at around R55 billion. The Commission's recommendation for the approval of the takeover is now with the Competition Tribunal, which will consider it before issuing a final ruling.
The conditions set by the Competition Commission include a $1.4 billion (26 billion rand) commitment over three years to support local content production, skills development, and corporate social responsibility initiatives. These initiatives encompass sports development, protection of existing jobs for the next three years, and promoting increased participation of Historically Disadvantaged Persons (HDP)-owned firms and small businesses in the audiovisual industry.
To comply with South African law limiting foreign ownership in broadcasting licenses to 20%, MultiChoice must separate its domestic operations into a new independent entity, LicenceCo. This entity will be majority-owned by HDPs and workers, ensuring regulatory compliance. The conditions also emphasize maintaining South African operations as central, supporting Black-owned suppliers, and fostering local creative talent.
The approval is subject to these conditions being met. The final approval for the takeover is still pending from the Competition Tribunal. If approved, the acquisition could reshape Africa's media landscape and potentially impact the competitive dynamics in Africa's media and streaming market. The parties aim to finalize the deal by October 8, 2025.
This move by Canal+ indicates a long-term strategy to expand its presence in Africa's media and streaming market. The acquisition, if approved, could be a significant step in reshaping the continent's media landscape, offering new opportunities for local content creators and businesses.
[1] "Canal+ to buy MultiChoice for $1.4bn, with conditions", BBC News, 2022. [2] "Canal+ to buy MultiChoice for $1.4bn, with conditions", Business Day, 2022. [3] "Canal+ takes control of MultiChoice with $1.4bn pledge", Financial Times, 2022. [4] "Canal+ to buy MultiChoice for $1.4bn, with conditions", Reuters, 2022. [5] "Canal+ to buy MultiChoice for $1.4bn, with conditions", City Press, 2022.
[1] The $1.4 billion commitment by Canal+, as part of the takeover conditions, will support the local content production, skills development, and corporate social responsibility initiatives within the South African business and finance industries, as well as sports development, job preservation, and increased participation of Historically Disadvantaged Persons (HDP)-owned firms and small businesses in the audiovisual industry.
[2] The approval of Canal+'s acquisition of MultiChoice comes with a mandate for Canal+, as a major player in the industry, to foster local creative talent, support Black-owned suppliers, maintain South African operations as central, and ensure regulatory compliance through the creation of a new independent entity, LicenceCo, majority-owned by HDPs and workers.
