R53 billion Multichoice takeover approved
France-based Canal+ has received regulatory approval to take over Multichoice, with the deal worth around R53 billion.
The parties said that the South African Competition Tribunal has approved the proposed transaction, subject to agreed conditions.
As the parties previously disclosed, the agreed conditions include a robust package of guaranteed public interest commitments.
The package supports the participation of firms controlled by Historically Disadvantaged Persons and Small, Micro and Medium Enterprises in the audio-visual industry in South Africa.
This package will also maintain funding for local South African general 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 in line with our previously communicated timeline,” said Canal+.
“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.”
The parties will now implement the takeover structure, which includes meeting the requirements of all applicable laws, such as restrictions on foreign ownership and control of South African broadcasting licences.
The structure includes Multichoice (Pty) Ltd, which contracts with South African subscribers, being carved out of the Multichoice Group and becoming independent.
Clearing the Competition Tribunal is a big step in completing the merger, but it is not the final hurdle.
For the transaction to proceed fully, the companies must also secure approvals from the Financial Surveillance Department, the JSE, the Takeover Regulation Panel, and the Independent Communications Authority of South Africa (Icasa).
Each step poses challenges and potential pitfalls, but Multichoice has assured that customers and subscribers will not be disrupted by the machinations in the background.
“The announcement marks a significant milestone and is a major step forward for both companies,” said Calvo Mawela, CEO of MultiChoice Group.
“We look forward to executing the remaining processes required to complete the transaction and to start building something extraordinary: a global media and entertainment company with Africa at its heart.”
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