South Africa’s Competition Commission has recommended the conditional approval of French media giant Canal+’s proposed acquisition of MultiChoice Group.
The watchdog said that it had concluded its investigation into the merger, which it was formally notified of in September 2024, and found it unlikely to substantially lessen or prevent competition in any market.
However, recognising the critical role of MultiChoice in South Africa’s audiovisual ecosystem, the commission has imposed a series of public interest conditions, particularly around employment, local content, and transformation.
Under the terms of the recommendation, the merged entity must uphold a moratorium on retrenchments for three years and ensure that the majority ownership of LicenceCo, MultiChoice’s broadcast arm, rests with historically disadvantaged persons (HDPs) and workers.
The deal also comes with commitments to supplier development, including increased procurement from HDPs and small businesses and sustained investment in local audiovisual content and its promotion in international markets.
Canal+, a subsidiary of the Paris-based Canal+ SA and listed on the London Stock Exchange, has pledged to retain MultiChoice’s incorporation and headquarters in South Africa.
The company also undertook to pursue a secondary inward listing on the Johannesburg Stock Exchange. In addition, the merged entity will continue supporting local news diversity on DStv and maintain ongoing corporate social responsibility initiatives such as skills and sports development.
While LicenceCo will be carved out before the deal’s completion, it remains central to several of the commitments made by the merger parties, particularly those related to content plurality and local news procurement. Based on MultiChoice’s historical expenditure, the total value of the public interest commitments is projected to reach approximately R26 billion over the next three years.
“The Commission is satisfied that the conditions attached to this merger sufficiently address the concerns raised during the investigation,” said Hardin Ratshisusu, the deputy commissioner. The final decision now rests with the Competition Tribunal, which will determine whether the transaction can proceed.
