In a significant development in the African media landscape, French media conglomerate Canal+ has received conditional approval from South Africa’s Competition Commission for its proposed acquisition of MultiChoice Group, a leading pay-TV broadcaster. The deal, valued at approximately 35 billion rand ($1.96 billion), involves Canal+’s offer of 125 rand per share for the shares of MultiChoice it does not already own.

Regulatory Conditions and Public Interest Commitments

The Competition Commission’s recommendation includes several conditions aimed at addressing public interest concerns:

• Employment Protection: A commitment to avoid layoffs for a period of three years post-acquisition

• Ownership by Historically Disadvantaged Persons (HDPs): Ensuring that the majority shareholding in the broadcasting unit will be held by HDPs and workers.

• Corporate Social Responsibility Initiatives: An investment of approximately 26 billion rand over three years in areas such as skills development in the audiovisual industry, sports development, and supplier development, including procurement from HDPs and small businesses

• Promotion of Local Content: Commitments to promote South African audiovisual content in new markets.

These conditions are designed to ensure that the acquisition does not substantially lessen competition and that it contributes positively to the South African economy and society

Next Steps and Market Impact

The final decision on the acquisition now rests with the Competition Tribunal. If approved, the deal would mark a significant expansion of Canal+’s presence in Africa, particularly in English-speaking regions. The acquisition aligns with Canal+’s strategy to grow its subscriber base and enhance its content offerings across the continent.

Following the announcement of the Competition Commission’s recommendation, MultiChoice shares experienced a notable increase, reflecting investor optimism about the potential benefits of the deal

The acquisition is also expected to have implications for the competitive dynamics of the African pay-TV market, potentially leading to increased investment in local content and services.

As the process moves forward, stakeholders will be closely monitoring the Competition Tribunal’s decision and the implementation of the agreed-upon conditions.