Canal+—a French media and telecommunications conglomerate—has finally clear a road to boost its expansion into English speaking countries in Africa. It long-running takeover of African content giant MultiChoice has moved a step closer with the approval from South Africa’s Competition Tribunal.
In a joint statement issued on Wednesday, MultiChoice and Canal+ both confirmed that they are progressing as planned and expect to finalize the deal ahead of the deadline set for October 8, 2025. Once the acquisition is successful, it'll be the largest media mergers in Africa.
The acquisition approval follows a mandatory cash offer by Canal+ to acquire all outstanding MultiChoice shares it doesn’t already own. Canal+ has been seeking to build out its business in Africa, in particular English-speaking markets, and has invested in several drama series as it built its stake in MultiChoice.
Canal+ initiated the acquisition deal at the beginning of this year after surpassing the 35% ownership threshold that mandates a buyout under South African company law. The French multimedia company proposed a price of ZAR125 per share, placing MultiChoice’s total valuation at more than ZAR55 billion. The acquisition will cost Canal+ more than ZAR30 billion in cash.
While waiting for regulatory clearance, the company continued to buy shares on the open market and, as of May 2024, held a 45.2% stake in MultiChoice.
However, certain conditions must be met for the deal to proceed. The South African broadcasting operations of MultiChoice must be transferred to a separate legal entity that is majority-owned by historically disadvantaged persons (HDPs).
The law ensures that control of the broadcasting licensee in remains in the hands of individuals or groups classified under South African law as historically disadvantaged. The law was implemented due to apartheid-era policies.
In addition to that, Canal+ and MultiChoice must comply with South Africa's broadcasting regulations on foreign ownership. To comply with this law, the companies are implementing a new corporate structure by creating a separate entity, MultiChoice (Pty) Ltd—referred to as “LicenceCo.” This entity will be independently managed and majority-owned by historically disadvantaged persons (HDPs), fulfilling Icasa’s requirement for at least 30% black ownership.
Ownership will be shared among Phuthuma Nathi (holding a 27% economic stake), Identity Partners Itai Consortium, Afrifund Consortium, and a Workers’ Trust (ESOP). Canal+ will have restricted voting rights capped at 20%, in line with local law. The MultiChoice Group will retain a 49% economic interest and a 20% voting share in LicenceCo, while the remainder of its assets and operations will stay within the main Group structure.
The deal required a complex set of regulatory approvals from the Competition Tribunal, Johannesburg Stock Exchange (JSE), Takeover Regulation Panel, Independent Communications Authority of South Africa (Icasa), and the Financial Surveillance Department. The Canal+ CEO Maxime Saada called the Competition Tribunal’s approval “a hugely positive step forward in our journey to bring together two iconic media and entertainment companies and create a true champion for Africa.”
