South Africa’s Competition Tribunal approves Multichoice, Canal+ $3bn merger
The highly anticipated merger between French media giant Groupe Canal+ SAS and South African pay-TV operator MultiChoice Group Limited has received conditional approval from South Africa’s Competition Tribunal.
This decision, announced on July 23, 2025, marks a significant development in the African media landscape, with potential implications for millions of MultiChoice subscribers, including a substantial base in Nigeria.
Canal+, which already held over 45% stake in MultiChoice, sought to acquire the remaining shares, aiming for full ownership. MultiChoice, the parent company of popular platforms like DStv, Showmax, and SuperSport, had argued that the merger was necessary to navigate intensifying competition in the global streaming market and mounting financial pressures.
In its official statement, the Tribunal’s approval comes with a comprehensive package of conditions designed to protect various stakeholders and ensure fair competition. These conditions, which were enhanced following a detailed hearing, include:
Employment Protection: Canal+ and MultiChoice have committed to no retrenchments of employees in South Africa for three years post-merger. This is a crucial safeguard for jobs within the MultiChoice ecosystem.
Promotion of Local Ownership: A significant condition involves the carve-out of LicenceCo, a MultiChoice subsidiary holding its broadcasting license. The majority of LicenceCo’s shareholding, economic, and voting interests will be held to the benefit of Historically Disadvantaged Persons (HDPs) and workers.
This includes enhancing the interests of Phuthuma Nathi Investments and introducing new HDP shareholders and an employee-focused broad-based ownership trust. This move aims to increase local participation and ownership in the broadcasting sector.
Headquarters and Listing: Both MultiChoice Group and LicenceCo will remain incorporated and headquartered in South Africa. Canal+ has also committed to a secondary inward listing on the Johannesburg Stock Exchange (JSE) within nine months of the merger’s implementation, subject to regulatory approvals.
Supplier Development and Local Content: To boost the participation of HDP-controlled firms and Small, Medium and Micro Enterprises (SMMEs) in the South African broadcasting sector, the merged entity and LicenceCo will collectively spend a specified, confidential amount on acquiring, commissioning, and producing South African general entertainment and sports content. They will also procure goods and services from HDP- and SMME-controlled firms.
