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South Africa’s Regulatory Body Approves MultiChoice’s Proposed $3 Billion Merger with Canal+
South Africa’s regulatory body has approved MultiChoice’s proposed $3 billion merger with the French company Canal+. This is an important step that could change the way people watch TV and entertainment in South Africa and across Africa.
The South African Competition Committee looked carefully at the deal and decided it won’t hurt competition in the country’s broadcasting market. They believe this merger won’t make it harder for other companies to compete, which is good news for viewers who want more choices.
But the approval comes with some important conditions. The committee wants to make sure the deal helps South Africans, especially those who have been historically left out of big business opportunities. So, the new company must increase ownership for historically disadvantaged people and workers. They also want the company to keep creating jobs and support small and black-owned businesses. The new company must keep operating from South Africa and spend money on local TV shows and movies. They also want to see more South African content being shared in other countries.
A new company called LicenceCo will be created to hold the broadcasting licenses. This company will be mostly owned by historically disadvantaged people and workers to follow South African laws. Canal+ and MultiChoice have agreed to this setup, which limits Canal+’s voting power to 20%, as required by law. This is different from other companies, like Elon Musk’s Starlink, which have struggled to meet these local rules.
The companies also promised not to lay off workers for three years after the merger. They will continue supporting skills training in the TV and film industry and help develop sports programs for communities that need it most. Over the next three years, the companies plan to spend about $1.4 billion on these public interest projects.
Canal+ first showed interest in buying MultiChoice back in 2020. Their goal is to create a big broadcasting company that covers both French-speaking and English-speaking parts of Africa. This will help them compete better with other big international media companies.
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Even though the Competition Committee has approved the deal, it still needs final permission from other regulators, including the Independent Communications Authority of South Africa (ICASA). Both Canal+ and MultiChoice are confident they will meet all the rules and complete the merger by October 2025.
South Africa’s regulatory body approves MultiChoice’s merger with Canal+, and this approval is a big deal for South Africa. It means more investment in local content and better chances for historically disadvantaged South Africans to take part in the business. It also promises more TV options for viewers and a stronger African voice in the media world. Overall, this merger could bring exciting changes to how people enjoy entertainment in South Africa and beyond.
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