French media giant Canal+ has moved a step closer to acquiring South African pay-TV heavyweight MultiChoice after South Africa’s Competition Commission recommended approval of the R55 billion (approximately $2.9 billion) merger, albeit with a series of stringent conditions aimed at protecting the public interest.
In a statement released this week, the Commission said it would support the transaction on the condition that the merged entity commits to maintaining operations in South Africa, preserving jobs, and significantly advancing local content production.
To comply with South Africa’s broadcasting laws, which limit foreign ownership of licensees to no more than 20% of voting rights, the companies have agreed to create a new entity called LicenceCo. This company will hold MultiChoice’s South African broadcasting license and will be majority-owned by historically disadvantaged persons. These include existing stakeholders like Phuthuma Nathi, the Identity Partners Itai Consortium, the Afrifund Consortium, and a newly established Workers’ Trust. MultiChoice Group will retain a 49% economic interest and 20% voting rights in LicenceCo.
The Commission has also stipulated measures to increase ownership by HDPs and workers in associated entities like Orbicom and set expectations for the promotion of South African content in new markets. Other conditions include commitments to supplier development and procurement targets from small and Black-owned businesses.
Importantly, Canal+ and MultiChoice have agreed to a three-year moratorium on retrenchments following the merger, a move aimed at easing concerns over potential job losses.
The recommendation comes as South Africa continues to navigate the complexities of foreign investment under its Black Economic Empowerment policies. These same regulations have previously hindered other international companies, most notably Elon Musk’s Starlink, which has been unable to launch in the country due to a lack of 30% local ownership. Musk has criticized the BEE requirements as discriminatory, although recent government signals suggest a potential softening of the stance.
While the Competition Commission’s endorsement is a major milestone, the Canal+-MultiChoice deal still requires final approval from the Competition Tribunal and other regulatory bodies. Both companies remain optimistic about fulfilling the necessary conditions and closing the transaction ahead of the extended deadline of October 8, 2025.
If approved, the merger would mark a significant reshaping of Africa’s media landscape, bringing together a dominant pan-African pay-TV provider and a European broadcasting powerhouse with ambitions to expand its footprint across the continent.
