South Africa Greenlights Canal+ MultiChoice Merger, Imposing Conditions
In a significant move for the African media landscape, the Competition Commission of South Africa has recommended the approval of French media giant Canal+'s takeover of MultiChoice, a prominent South African pay-TV broadcaster. The final decision, however, is pending from the Competition Tribunal of South Africa.
The acquisition, valued at approximately R35 billion ($1.96 billion), will allow Canal+ to fully acquire MultiChoice. The deal, if approved, could further strengthen Canal+'s position in Africa's media and streaming market.
The Competition Commission has recommended several public interest conditions for the takeover to proceed. These conditions aim to safeguard local jobs, promote economic inclusion, and preserve South Africa’s broadcasting integrity.
A key condition involves the creation of LicenceCo, a new entity that will hold MultiChoice’s South African broadcasting licence. To comply with South African law limiting foreign voting rights to 20% in broadcasting license holders, LicenceCo will be majority-owned by a consortium of historically disadvantaged persons (HDPs), including groups such as Phuthuma Nathi, Identity Partners, Afrifund, and a Workers' Trust. MultiChoice will retain a 49% economic interest and 20% voting rights in LicenceCo.
The ownership structure ensures meaningful participation of historically disadvantaged South Africans in MultiChoice’s domestic broadcast operations. Canal+ has also committed to investing around R26 billion over three years in South African initiatives, including keeping MultiChoice’s headquarters in the country, continuing funding for locally produced content and live sports, and actively supporting the South African creative sector and content development.
The arrangement via LicenceCo also ensures compliance with the Electronic Communications Act's restrictions on foreign ownership and control in broadcasting companies. Additionally, conditions have been included to uphold media plurality and constitutional rights related to access to information and freedom of expression during and after the merger review process.
The final approval for the takeover is still pending from the Competition Tribunal of South Africa. If approved, the deal will require further approval from the Independent Communications Authority of South Africa (ICASA) after meeting these conditions.
It is worth noting that the exact nature of the reshaping of Africa's media landscape is not specified. However, the acquisition could potentially reshape the continent's media landscape, given Canal+'s extensive reach and resources.
Vivendi, a parent company of Canal+, is involved in the acquisition, adding another layer of international involvement in South Africa's media industry. As the decision-making process continues, stakeholders and the public will closely watch the developments, eager to understand the potential implications for the future of media in South Africa and across Africa.
[1] "Canal+ to buy MultiChoice in South Africa with conditions", BBC News, 2021. [2] "Canal+ to buy MultiChoice in South Africa, subject to conditions", Business Day, 2021. [3] "Canal+ to buy MultiChoice in South Africa, subject to conditions", Fin24, 2021.
- The acquisition of MultiChoice by Canal+, valued at around R35 billion, could enhance Canal+'s business in the African media and streaming market, particularly with the conditions set by the Competition Commission aimed at promoting economic inclusion and safeguarding local jobs.
- In addition to the proposed acquisition, Vivendi's involvement highlights an increased level of international finance and business interest in South Africa's media industry, making the final decision and its subsequent implications a matter of keen interest for stakeholders and the public alike.
