MultiChoice's Top Pay-TV Group Acquisition by Canal+ Nears Completion
Canal+ Finalizes Acquisition of MultiChoice Group in South Africa
French media giant Canal+ has received approval from South Africa's Competition Tribunal for its acquisition of MultiChoice Group, in a deal valued at around $3 billion (approximately 55 billion rand). The acquisition, one of the most significant in African media history, is expected to close by October 8.
The deal involves Canal+ purchasing the remaining 55% stake it did not previously own, moving to full ownership of the company. This acquisition marks a strategic commitment by Canal+ to grow its African footprint while ensuring that South Africa's media landscape maintains local content and economic benefits.
The acquisition requires MultiChoice's headquarters and significant operations to remain in South Africa, helping preserve local media sovereignty despite the foreign ownership changes. Calvo Mawela, CEO of MultiChoice, describes the decision as a significant milestone aligning with the companies' shared vision and commitment to community and content impact.
Canal+ has committed to maintaining and continuing funding locally produced South African general entertainment and sports content. This includes a commitment to invest about 26 billion rand over three years in South Africa to support public interest priorities in the media sector and actively back the country’s creative community.
The deal also includes a condition that the structural separation of MultiChoice's South African broadcasting licensee will make it a HDP-majority-owned and independently run entity. This move is aimed at increasing historically disadvantaged persons (HDPs) participation in South Africa's audiovisual sector.
The transaction is part of Canal+'s broader M&A push post-Vivendi spin-off, reinforcing its ambitions to dominate the African media landscape and rival global streaming players. The offer price for the acquisition is ZAR 125 ($7.11) per share. Maxime Saada, CEO of Canal+, states that the tribunal's approval marks the final stage in the South African competition process.
In addition, Canal+ and MultiChoice have committed to supporting small, micro, and medium enterprises (SMMEs). The acquisition is on track to be finalized before October 8, after which Canal+ will consolidate its position as a major pan-African media player combining its existing presence in 25 African countries with MultiChoice’s 14.5 million subscribers across 50 sub-Saharan markets. The deal complies with South African competition law and the Electronic Communications Act of 2005, which regulates foreign ownership limits in the broadcasting sector. The approval by the Competition Tribunal came with "agreed conditions" that preserve local content investment and opportunities for South African creatives within the new ownership structure.
- The acquisition of MultiChoice Group by Canal+, valued at around $3 billion, marks a strategic financial commitment by Canal+ to expand their business footprint in Africa while maintaining and continuing funding for locally produced South African content.
- The deal between Canal+ and MultiChoice includes a condition that the structural separation of MultiChoice's South African broadcasting licensee will make it a HDP-majority-owned and independently run entity, aimed at increasing participation of historically disadvantaged persons in South Africa's audiovisual sector, thereby supporting local business interests.
