Regulator gives go-ahead for Canal+ to take over MultiChoice. Photo courtesy: Daily Investor
(The Post News)- The South African Competition Tribunal has given its approval for Canal+ to acquire MultiChoice for 35 billion rand, subject to certain conditions being met.
This acquisition has the potential to transform Africa’s media industry, sparking a consolidation process to rival global streaming services like Netflix.
The acquisition marks a significant milestone for Canal+’s African expansion, especially in English-speaking markets, and will provide MultiChoice with essential funding for local content and innovation.
According to Canal+ CEO Maxime Saada, the merged entity will enjoy increased scale, greater exposure to growing markets, and the potential for significant synergies.
Canal+, which was spun off from Vivendi in December, previously offered 125 rand per share for MultiChoice, valuing the company at approximately 55 billion rand.
The Competition Commission found in May that the deal was unlikely to significantly reduce or hinder competition, recommending approval to the Tribunal.
The deal includes public interest commitments to support Historically Disadvantaged Persons and small to medium-sized enterprises in South Africa’s audio-visual sector.
The Commission estimated that the public interest commitments would be worth around 26 billion rand over the next three years.
According to the companies, the public interest commitments will ensure continued funding for local entertainment and sports content, supporting South African content creators.
To comply with local regulations, MultiChoice will create a new entity, majority-owned by Historically Disadvantaged Persons, to hold its broadcasting license, ensuring compliance with foreign ownership rules.
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