The Competition Commission (“Commission”) has recommended that the Competition Tribunal (“Tribunal”) approves the proposed transaction whereby Groupe Canal+ SAS (“Canal+”) intends to acquire MultiChoice Group Limited (“MCG”), with conditions.
The recommendation follows the Commission’s investigation of the large merger notification received on 30 September 2024.
The primary acquiring firm is Canal+, a French société par actions simplifiée registered with the Registre du Commerce et des Sociétés in Nanterre, France. Canal+ is a subsidiary of Canal+ SA, which is listed on the London Stock Exchange’s Main Market.
Canal+ together with its ultimate controllers, and the firms controlled by those firms are hereinafter collectively referred to as the “Acquiring Group”.
In a statement made available to The Bulrushes, on Wednesday, (21 May 2025), the Commission said: “The Acquiring Group is an international media firm involved in the production, commissioning and supply of audiovisual content, the provision of advertising services, development of video games and the publication of books”.
The Commission added: “The Acquiring Group’s activities in South Africa, which are relevant for this merger assessment, are the supply of audiovisual content in South Africa, including to MCG.
“The primary target firm is MCG, a public company listed on the Johannesburg Stock Exchange (JSE).”
MCG is not controlled by any firm.
MCG controls a number of firms in South Africa, including Supersportbet (Pty) Ltd, and Showmax SA (Pty) Ltd, DSTV Media Sales (Pty) Ltd, MultiChoice Support Services (Pty) Ltd, MultiChoice (Pty) Ltd (“LicenceCo”), Electronic Media Network (Pty) Ltd, Orbicom (Pty) Ltd (“Orbicom”) and SuperSport International Holdings (Pty) Ltd. MCG and all the firms it controls (excluding LicenceCo, which will be carved out prior to the implementation of the proposed transaction) are collectively referred to as the “Target Group”.
“The Target Group is an audiovisual entertainment services provider which operates across Sub-Saharan Africa,”‘ the Commission said.
“Of relevance to this merger assessment is that the Target Group is a supplier of audiovisual content to LicenceCo.
“LicenceCo is a broadcaster that broadcasts audiovisual content through the DStv service, a pay or subscription-based television offering.”
The Commission said the Target Group also provides audiovisual content via its streaming service, Showmax.
The Commission said it is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market.
However, in recognition of the important role played by the Target Group within the broader audiovisual ecosystem in South Africa, and to address public interest concerns raised by various stakeholders, the Commission has recommended approval of the merger, subject to several conditions.
The conditions include, but not limited to, addressing employment concerns, an increase in the shareholding of historically disadvantaged persons (HDPs) and workers in Orbicom and LicenceCo, supplier development commitments, the merged entity’s continued operation from South Africa, plurality of television news and export promotion.
“The merger parties have agreed to a moratorium on retrenchments for a period of three years following the merger implementation date,” the Commission revealed.
“The merger parties have also committed that the majority of LicenceCo’s shareholders will be HDPs and workers.
“Moreover, the parties have agreed to continue certain corporate social responsibility initiatives such as skills development in the audiovisual industry and sports development.”
In addition, Canal+ has undertaken that MCG will remain incorporated and headquartered in South Africa, endeavour to promote exports, and will pursue a secondary inward listing on the securities exchange operated by the JSE Limited.
The merged entity has also made supplier development commitments that include expenditure on local audiovisual content, the promotion of South African audiovisual content in new markets, and procurement from HDPs and small, medium and micro enterprises (SMMEs).
Finally, the parties have agreed that LicenceCo will continue to procure local news content for DStv and will ensure the diversity of the news content it broadcasts.
The total value of all the public interest commitments advanced by the merger parties (based on past spend by MCG) is projected at a total amount of approximately R26 billion over the next three years.
“In large mergers, the Commission is required to assess and to ultimately make a recommendation to the Tribunal,” Deputy Commissioner Hardin Ratshisusu explained.
“The Commission is satisfied that the conditions attached to this merger sufficiently address the concerns raised during the investigation.
“The matter is now before the Tribunal for a final determination.”
