Canal+ MultiChoice Deal Faces South African Review this Week

On Thursday and Friday, July 17 and 18, 2025, the Competition Tribunal will consider the planned merger of South Africa’s MultiChoice Group and the French media giant Canal+.

In early 2024, Canal+’s attempt to purchase MultiChoice which owns DStv, Showmax, SuperSport, and a number of other media assets triggered South Africa’s required offer threshold of 35% ownership.

Media Monitoring Africa, Pambili Media, the Competition Commission, and the merger parties themselves will also submit to the Tribunal during the hearings.

In addition to attending the hearings, South Africa’s Department of Trade, Industry, and Competition is anticipated to provide feedback.

“The proposed merger should be approved, subject to a set of public interest conditions, as recommended by the Commission,” the Tribunal stated in a statement.

When South Africa’s communications authority released an application to give Canal+ control of Orbicom’s licenses in March 2025, the proposed merger accomplished a significant milestone.

A key stage in advancing the takeover is the transfer of control of Orbicom’s radio frequency spectrum and electronic communication licenses, in which Orbicom distributes MultiChoice’s signals.

On November 28, 2024, Orbicom filed applications to give Canal+ management of its several licenses.

The Independent Communications Authority of South Africa (Icasa), the country’s communications regulator, is assessing the application using the following standards:

• Promotion of competition in the ICT sector;
• Interests of consumers; and,
• Equity ownership by Historically Disadvantaged Persons (HDPs).

Orbicom’s claim that HDPs own 40% of Groupe Canal+ was acknowledged by the regulator.

After the notice was published, Icasa asked all interested parties to submit written responses to the application within 14 working days.

On Tuesday, March 18, 2025, the regulator released the notice, allowing interested parties until Monday, April 7, to provide written comments.

Since October 2020, Canal+ has been acquiring MultiChoice shares on the open market in a slow but steady manner, reaching the necessary offer level in early 2024.

After some back and forth with MultiChoice and a censure from the Takeover Regulation Panel (TRP), Canal+ made an offer of R125 (approximately $6.95) per share. MultiChoice was valued at almost R55 billion (approximately $3,068,455,173.67) in this offer.

Canal+ will have to pay over R30 billion (approximately $1,673,944,259.27) in cash for the acquisition, and it is still purchasing MultiChoice stock while its offer is being evaluated.

In May 2024, the TRP released its most recent report on Canal+’s ownership, which showed a 45.2% stake. Even though Canal+ was required by law to submit an offer, the transaction still needs to clear regulatory obstacles.

In order to provide broadcasting licenses under the Electronic Communications Act, the parties must continue to restrict the French media behemoth’s voting rights to 20%.

MultiChoice will be established as a separate company, called LicenceCo, to hold operational licenses in South Africa in order to comply.

The MultiChoice Group will retain ownership of the remaining video media assets, while LicenceCo will enter into a contract with MultiChoice’s South African subscribers.

Due to its ownership of LicenceCo, MultiChoice Group will eventually possess a 20% voting stake and a 49% economic interest.

The businesses clarified that, excluding LicenceCo, the MultiChoice Group will continue to own a 75% direct stake in MultiChoice South Africa.

They also stated that Phuthuma Nathi would keep its current 25% stake in MultiChoice South Africa.

“LicenceCo will enter into a number of commercial agreements with subsidiaries of the MultiChoice Group concerning the services that other MultiChoice Group entities currently provide to LicenceCo.”

According to the parties, these include, among other things, technology, subscriber management and support, and content provision.