The news
- South Africa’s Competition Tribunal has conditionally approved Canal+’s R55 billion acquisition of MultiChoice.
- A new entity, LicenceCo, will help Canal+ comply with local broadcasting ownership laws.
- ICASA still needs to approve the broadcasting licence transfer before the deal can close.
South Africa’s Competition Tribunal has given conditional approval to French media group Canal+ to acquire pay-TV operator MultiChoice, marking a significant milestone in one of the country’s largest media deals. The decision follows a recommendation by the Competition Commission, which found that the R55 billion ($2.9 billion) deal was unlikely to lessen competition in the broadcasting sector.
However, the approval is subject to several public interest conditions aimed at safeguarding local jobs, promoting economic inclusion, and preserving South Africa’s broadcasting integrity.
One of the key measures introduced to comply with South African ownership laws is the creation of a separate company called LicenceCo. Under the Electronic Communications Act, foreign entities are restricted to a 20% cap on voting rights in companies holding a broadcasting licence.
LicenceCo will hold MultiChoice’s South African broadcasting licence and be majority-owned by a consortium of historically disadvantaged persons (HDPs), including Phuthuma Nathi, Identity Partners, Afrifund, and a Workers’ Trust. MultiChoice will retain a 49% economic interest and 20% voting rights in LicenceCo.
The Competition Commission’s conditions also require Canal+ to protect existing jobs, promote local content development, support Black-owned suppliers, and ensure that South African operations remain central to the new entity’s future. These measures are designed to ensure that the merger benefits not only shareholders but also the broader South African economy.
Despite the Competition Tribunal’s approval, the transaction is not yet complete. The deal still requires the approval of the Independent Communications Authority of South Africa (ICASA), which regulates the country’s communications and broadcasting sectors. Only after ICASA clears the transfer of the broadcasting licence to LicenceCo can the acquisition be finalised.
Canal+ has gradually increased its stake in MultiChoice since early 2024, triggering a mandatory buyout offer after surpassing the 35% threshold. The French broadcaster currently holds just over 40% of MultiChoice and aims to take full control of the company.
In March 2025, Canal+ extended the deadline to finalise the transaction by six months, pushing the target date to October 8, 2025. The extension was designed to give both parties sufficient time to navigate the regulatory landscape, including setting up LicenceCo and securing ICASA’s approval.
If successful, the acquisition would expand Canal+’s presence across Africa, where MultiChoice operates in more than 50 countries. It also positions the combined entity to compete more effectively with global streaming giants, while still adhering to South Africa’s stringent localisation and empowerment policies.
The spotlight now shifts to ICASA, which holds the final say on whether this landmark deal goes through. Until then, Canal+ and MultiChoice will continue working behind the scenes to meet all regulatory obligations and close the deal within the extended timeline.
