Canal+ Set to Buy MultiChoice in Landmark African Media Deal

Canal+ is poised to expand its presence in Africa through the planned acquisition of MultiChoice, the continent’s largest pay-TV provider. The French broadcaster, which already owns a 45% stake in MultiChoice, has offered to acquire the remaining shares at R125 per share, subject to final regulatory approval, with MultiChoice stock currently trading at R116, as of writing. 

The proposed takeover recently passed a significant milestone after South Africa’s Competition Commission recommended that the deal proceed, albeit with certain conditions. While the Commission concluded that the merger is unlikely to substantially lessen competition, it highlighted MultiChoice’s crucial role in the local audiovisual sector and acknowledged several public interest concerns raised by stakeholders.

If successful, the deal is expected to create what analysts refer to as the Pan-African Broadcasting Powerhouse - combining Canal+’s 8 million subscribers across 25 countries with MultiChoice’s 19.3 million users in 50 sub-Saharan African nations. 

Regulatory Conditions and Public Interest Commitments

In recent days, the Competition Commission outlined a series of conditions intended to address regulatory concerns surrounding the proposed acquisition. These measures are aimed at protecting jobs, promoting local content, and fostering inclusive economic participation. Key commitments include a three-year moratorium on retrenchments, increased ownership by historically disadvantaged persons (HDPs) and employees, maintaining core operations within South Africa, and enhancing procurement from small and black-owned businesses.

Both companies welcomed the Commission’s recommendation as a significant milestone in the approval process.

“We welcome today’s recommendation from South Africa’s Competition Commission. This is a major step forward in our ambition to create a global media and entertainment company with Africa at its heart. We strongly believe that this transaction is positive for South Africa, providing consumers with greater choice and Africa with a true entertainment champion,” said the CEO of Canal+.

“The recommendation from the Competition Commission is a key step forward towards the completion of the transaction and a recognition of the strong package of public interest commitments provided by the parties. We look forward to closing the transaction, not only for the benefit of shareholders, but also for the viewing public and the multiple industries that depend on MultiChoice,” added the CEO of MultiChoice Group.

Economic Impact and Continued South African Presence

Canal+ has also committed to retaining MultiChoice’s headquarters in South Africa, supporting the export of local content, and pursuing a secondary listing on the Johannesburg Stock Exchange. Based on MultiChoice’s historical spending patterns, the value of these public interest commitments is estimated at R26 billion over the next three years, underscoring the potential economic and social benefits of the merger. 

Next Steps in the Approval Process 

The long stop date for the proposed transaction, originally set for 8 April, was extended in March this year to 8 October 2025, allowing additional time to meet the required conditions. A long stop date is a deadline set in legal or contractual agreements, often in mergers and acquisitions, by which all conditions must be satisfied and the transaction completed. The deal is currently under review by the Competition Tribunal, whose approval is necessary for it to become unconditional. Here’s the revised timetable.

This is expected to be finalised on 09 October 2025. For investors on EasyEquities, communication should be sent to shareholders once the deal is finalised, after markets close on the last date to trade; shares of MultiChoice are available on EasyEquities in the ZAR account. 

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