Canal+ Approaching MultiChoice Acquisition Completion Amid Regulatory Conditions
Deal News | May 21, 2025 | EIN
South Africa's Competition Commission has recommended approval of Canal+'s acquisition of MultiChoice for R55 billion, subject to several strict conditions to protect public interest. These conditions include commitments to employment, investment in local content, and increased ownership by historically disadvantaged persons (HDPs). A new entity, LicenceCo, will be created to hold MultiChoice's South African broadcasting license, ensuring majority ownership by HDPs, in compliance with foreign ownership laws. Canal+ and MultiChoice must adhere to conditions including no retrenchments for three years post-merger, and increased shareholding by HDPs and workers in various entities. The recommendation is a key step in the acquisition process, but final approval is still pending from the Competition Tribunal and other regulatory bodies. Both companies aim to complete the acquisition by October 8, 2025.
Sectors
- Media and Entertainment
- Telecommunications
Geography
- South Africa – The geographical focus is South Africa, where the acquisition is subject to local regulatory approval and compliance with ownership laws.
- France – Canal+, the acquiring company, is a French media conglomerate expanding its presence in South Africa through this acquisition.
Industry
- Media and Entertainment – The acquisition involves major players in the media and entertainment industry, highlighting the strategic significance of broadcasting and content delivery in South Africa.
- Telecommunications – The transaction directly affects the telecommunications landscape in South Africa, with implications for ownership and control under local laws.
Financials
- R55 billion ($2.9 billion) – The purchase price of MultiChoice by Canal+.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Canal+ | Bidding CompanyBuyer | Company | A French media conglomerate seeking to acquire MultiChoice. |
| MultiChoice | Target company | Company | A South African pay-TV giant being acquired by Canal+. |
| South Africa's Competition Commission | Regulatory Body | Government | The entity recommending conditional approval for the acquisition. |
| LicenceCo | New Entity | Company | A proposed entity to hold MultiChoice's broadcasting license and ensure compliance with ownership laws. |