Canal+ $2 billion MultiChoice acquisition okayed by South Africa’s Competition Tribunal

South Africa’s Competition Tribunal has approved a $2 billion (35 billion rand) takeover of MultiChoice Group by French media giant Canal+. The approval, announced today, comes with conditions to address public interest concerns and ensure compliance with South African broadcasting regulations.

Canal+, a pay-TV company spun off from Vivendi in December 2024, offered 125 rand per share for MultiChoice shares it does not already own, valuing the South African media giant at roughly $3 billion (55 billion rand). The deal, which has been ongoing since early 2024, is a strategic move by Canal+ to expand its footprint in English-speaking African markets while providing MultiChoice with capital to bolster local content and innovation.

The acquisition is poised to create a powerhouse in Africa’s pay-TV and streaming sectors. 

MultiChoice, which operates in 50 sub-Saharan countries and serves 19.3 million subscribers, is the continent’s largest pay-TV provider. Its portfolio includes linear channels, the streaming platform Showmax, and production assets. Canal+, already a major player in 25 African countries with eight million subscribers, aims to leverage MultiChoice’s infrastructure to compete with global streaming giants like Netflix and Amazon Prime.

Maxime Saada, CEO of Canal+, in a statement, said, “This is a major step forward in our ambition to create a global media and entertainment company with Africa at its heart.” He emphasised the deal’s potential to benefit South African consumers, creative businesses, and the nation’s sporting ecosystem.

Calvo Mawela, CEO of MultiChoice Group, echoed Saada’s sentiment, calling the approval a “significant milestone.” He highlighted the deal’s role in securing financial stability for MultiChoice, which has faced challenging operating conditions amid competition from global streamers. “We look forward to building a global media and entertainment company with Africa at its core,” Mawela added.

Conditions for approval of Canal+’s acquisition of MultiChoice

The Competition Tribunal’s approval follows a positive recommendation from South Africa’s Competition Commission in May 2025. The Commission found the deal unlikely to harm competition but imposed conditions to address public interest concerns. These include a $1.4 billion (26 billion rand) commitment over three years to support local content, skills development, and corporate social responsibility initiatives, such as sports development.

To comply with South African regulations limiting foreign ownership of broadcasting licenses to 20%, MultiChoice will carve out its domestic unit into a new entity, LicenceCo. This independent company will be majority-owned by Historically Disadvantaged Persons (HDPs) and workers, ensuring compliance with local laws. The parties have also committed to no worker retrenchments for three years and increased participation of HDP-controlled firms and small businesses in the audiovisual industry.

While the Competition Tribunal’s approval clears a major hurdle, the deal still requires final clearance from the Independent Communications Authority of South Africa (ICASA) for the transfer of MultiChoice’s broadcasting license to LicenceCo. 

In March 2025, Canal+ extended the transaction deadline to October 8, 2025, to navigate these regulatory requirements. The companies remain on track to meet this timeline.

Canal+ has steadily increased its stake in MultiChoice since 2024, currently holding over 40% of the company. After surpassing the 35% threshold, it triggered a mandatory buyout offer under South African regulations. The 125 rand per share offer represents a 67% premium over MultiChoice’s share price before Canal+’s initial approach in February 2024.

The deal has sparked optimism in the market, with MultiChoice’s shares rising 5.33% after the Competition Commission’s recommendation in May. Industry observers see the acquisition as a strategic consolidation to counter the dominance of global streaming platforms. By combining Canal+’s resources with MultiChoice’s extensive reach, the merged entity could enhance local content production and expand into new markets.

MultiChoice has faced significant challenges, including a 40-year high in operating difficulties, driven by competition from Netflix, Amazon Prime, and TikTok. The company has also grappled with piracy, estimating losses of billions due to two million pirated views. The influx of capital from Canal+ is expected to stabilise MultiChoice’s finances and fuel innovation, particularly in its Showmax streaming platform.

Canal+’s expansion in Africa aligns with its broader strategy. The company recently partnered with Netflix to bundle offerings across 24 Francophone African countries, enhancing its position as a content aggregator. This acquisition could further solidify its dominance in the region’s media sector.

As Canal+ and MultiChoice work toward finalising the deal by October 8, 2025, the focus will be on securing ICASA’s approval and implementing the new LicenceCo structure. 

The transaction is a watershed moment for Africa’s media industry, promising enhanced scale, investment, and global competitiveness. For South African viewers and creators, the deal could usher in a new era of local content and innovation, provided the regulatory and public interest commitments are met.