Canal+ Moves to Acquire MultiChoice, Setting a New Record in African Media Deals
Deal News | May 26, 2025 | EIN
The Competition Commission has recommended the approval of Groupe Canal+'s acquisition of MultiChoice Group, a significant deal valuing MultiChoice at R55-billion, despite the purchase price being around R35-billion for shares Canal+ does not already own. This merger represents the largest media deal in Africa's history and suggests major shifts in the region's media landscape. Concerns have been raised regarding media diversity and fair competition, especially as MultiChoice holds dominant positions in subscription television and live sports broadcasting in South Africa. This transaction has triggered South Africa's 20% foreign ownership cap, requiring MultiChoice to restructure its operations via LicenceCo to remain compliant with national regulations. The merged entity has pledged R26-billion over three years for local content production, among other commitments, but the detail and transparency of these financials remain unclear. There is talk of strategic control potentially moving from South Africa to Paris, despite regulatory compliance. The commission's approval contrasts with its recent decisive stance on competition in the digital platforms market, reflecting a need for vigilance to maintain media plurality and fair competition.
Sectors
- Media and Entertainment
- Telecommunications
Geography
- South Africa – South Africa is central to the article as it is where MultiChoice is based and where regulatory approval for the merger is required.
- France – France is relevant as Groupe Canal+, a French company, is the acquirer in this merger.
Industry
- Media and Entertainment – This industry is relevant to the article as the merger involves major players in the media and entertainment sector, specifically concerning television broadcasting and content rights.
- Telecommunications – The transaction touches on telecommunications as it involves broadcasting licences and the restructuring needed to comply with foreign ownership caps in South Africa.
Financials
- R55 billion – Total implied valuation of MultiChoice when accounting for shares Canal+ already owns.
- R35 billion – Purchase price for the shares of MultiChoice that Canal+ does not yet own.
- R26 billion – Commitment over three years from the merged entity towards local content production, skills training, and other public interest initiatives.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Groupe Canal+ | Acquirer | Company | A French media company acquiring MultiChoice to expand its influence in African media. |
| MultiChoice Group | Target | Company | A South African subscription television company with significant market power in the region. |
| Competition Commission | Regulatory Body | Government | A South African regulator tasked with reviewing the merger for compliance with competition laws. |
| Competition Tribunal | Regulatory Body | Government | The body with final authority over the approval of the merger. |
| Maxime Saada | CEO of Groupe Canal+ | Person | CEO of the acquiring company, expressing support and strategic intentions for the merger. |
| Calvo Mawela | CEO of MultiChoice Group | Person | CEO of the target company, supporting the merger process. |