In a pivotal moment for the African media landscape, French broadcasting giant Canal+ has received conditional approval from South Africa’s Competition Commission to proceed with its ambitious acquisition of MultiChoice Group, Africa’s leading pay-TV provider.
The move marks one of the most significant foreign investments in South Africa’s broadcasting sector, valuing MultiChoice at approximately R35 billion ($1.96 billion).
Canal+, already a substantial shareholder in MultiChoice, submitted a formal offer earlier this year to acquire all remaining shares at R125 each.
Regulatory Green Light Comes with Key Conditions
While the Competition Commission has recommended the deal proceed, its approval comes with strict conditions aimed at safeguarding public interest. Notably:
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No Job Cuts for Three Years: To protect the local workforce, the merger parties are prohibited from implementing any retrenchments for a minimum of 36 months post-acquisition.
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Ownership Transformation: MultiChoice’s broadcast license will be transferred to a newly created company, LicenceCo, which must be majority-owned by historically disadvantaged persons (HDPs) and South African workers. This restructuring is essential to meet the requirements of the Electronic Communications Act, which limits foreign ownership of broadcasting services.
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Public Interest Investment: Canal+ and MultiChoice are required to invest over R26 billion across initiatives including skills development, local content creation, supplier diversity, and sports promotion within three years of the deal’s completion.
Strategic Move Amid Shifting Media Trends
The acquisition positions Canal+ to deepen its reach across Sub-Saharan Africa, where MultiChoice dominates with its DStv and GOtv platforms.
The deal also aligns with Canal+’s global strategy to expand beyond its traditional European stronghold into high-growth markets.
“This transaction reflects our long-term commitment to Africa,” a Canal+ spokesperson said.
“We’re focused on developing local content, supporting South African creatives, and expanding digital and streaming platforms for the continent’s growing audience.”
Restructuring and Shareholding Changes
Under the terms of the merger, LicenceCo will take charge of MultiChoice’s South African broadcast license and subscription operations.
Canal+ will hold a 100% economic interest in MultiChoice Group, while LicenceCo will maintain majority HDP ownership.
Key South African entities—including the Phuthuma Nathi scheme, Identity Partners, Afrifund Consortium, and a dedicated Workers’ Trust—are expected to hold significant stakes in LicenceCo.
MultiChoice itself will retain a 49% economic interest in the entity, albeit with limited voting rights capped at 20%.
Next Steps: Tribunal Review and Final Approval
The final hurdle remains a formal review by the Competition Tribunal, expected to conclude in the coming months.
Meanwhile, Canal+ has extended the deadline to finalize the transaction to October 8, 2025, to ensure all regulatory requirements are fully met.
Industry analysts view the acquisition as a watershed moment for African broadcasting.
While concerns about media independence and foreign control linger, many stakeholders are optimistic that the merger could drive innovation, improve content offerings, and accelerate digital transformation across the continent.
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