South Africa's Canal+ $2B MultiChoice Acquisition Cleared With 67% Premium, $1.4B Investment Mandate

South Africa’s Competition Tribunal has cleared the $2 billion (35 billion rand) acquisition of MultiChoice Group by French media conglomerate Canal+, marking a pivotal step in consolidating Africa’s pay-TV and streaming markets [1]. The approval, announced alongside conditions to address public interest concerns, follows a positive recommendation from the Competition Commission in May 2025. Canal+, which has held over 40% of MultiChoice since 2024, now must finalize the deal by October 8, 2025, pending ICASA approval for license transfer to a newly created entity, LicenceCo [2].

The all-share offer of 125 rand per share represents a 67% premium over MultiChoice’s pre-acquisition price, valuing the company at approximately $3 billion (55 billion rand). Canal+, spun off from Vivendi in December 2024, aims to leverage MultiChoice’s 19.3 million subscribers across 50 sub-Saharan countries and its streaming platform, Showmax, to counter competition from Netflix and Amazon Prime [3]. MultiChoice CEO Calvo Mawela described the approval as a “significant milestone,” emphasizing the deal’s role in securing financial stability amid challenges from global streaming services and piracy [4].

Regulatory conditions require Canal+ to invest $1.4 billion (26 billion rand) over three years to support local content, skills development, and corporate social responsibility initiatives, including sports programs. To comply with South Africa’s 20% foreign ownership cap on broadcasting licenses, MultiChoice will transfer its domestic operations to LicenceCo, majority-owned by historically disadvantaged persons (HDPs) and workers. The agreement also prohibits retrenchments for three years and mandates increased participation of HDP-controlled firms in the audiovisual sector [5].

Industry analysts highlight the deal’s potential to reshape Africa’s media landscape. By combining Canal+’s resources with MultiChoice’s infrastructure, the merged entity could enhance local content production and expand into new markets. MultiChoice, which has faced declining revenues due to competition from TikTok and piracy—estimated to cost billions in losses—stands to benefit from Canal+’s capital and strategic partnerships, such as its recent collaboration with Netflix to bundle offerings across Francophone Africa [6].

The acquisition follows a strategic shift for Canal+, which has steadily increased its stake in MultiChoice since 2024. With the Competition Tribunal’s clearance, focus now turns to ICASA’s final approval and the implementation of LicenceCo’s structure. The outcome could set a precedent for foreign investments in African media, balancing regulatory demands with market growth ambitions.

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