Canal+ gets approval to buy MultiChoice in R53 billion deal

image: Business Tech/page

by Kelebogile Matlou

French media company Canal+ has received official permission to buy South African broadcaster MultiChoice. The deal is worth about R53 billion. The South African Competition Tribunal has approved the deal, but with certain conditions. These include promises to support businesses owned by
previously disadvantaged people and small companies in the local TV and film industry.

The deal also ensures that MultiChoice will continue to support South African entertainment and sports content. “The approval by South Africa’s Competition Tribunal marks the final stage in the South African competition process and clears the way for us to conclude the transaction… It is a hugely positive step forward in our journey to bring together two iconic media and entertainment companies and create a true champion for Africa,” said Canal+.

image: Tech Daily Post

Now that the Tribunal has approved the deal, Canal+ and MultiChoice will begin the next steps. These include making sure they follow all South African laws, such as limits on how much of a broadcasting company foreigners can own. One part of the plan is to separate MultiChoice (Pty) Ltd, which deals
with South African customers, from the rest of the MultiChoice Group. This part will become an independent company. Although this approval is a significant step, the companies still require permission from several other organizations, including the Financial Surveillance Department, the Johannesburg Stock Exchange (JSE), the Takeover Regulation Panel, and Icasa (the broadcasting regulator). MultiChoice has said that customers will not be affected by these changes.

“The announcement marks a significant milestone and is a major step forward for both companies. We look forward to finishing the process and creating a strong global media company with Africa at its heart,”MultiChoice CEO Calvo Mawela said.