Johannesburg – Canal+ has agreed to a three-year suspension on restocking with the Multichoice Group following the merger implementation date.
Sipho Maseko and Sonja de Bruyn joined the extensive Black Economic Empowerment (BBBEE) consortium that played a key role in fostering the acquisition of Canal+'s Multichoice Group.
Related: Sipho Maseko and Sonja de Bruyn join Bee Consortium to help acquire Canal+ Secure Multichoice
As part of the transaction, Multichoice South Africa's broadcast licensing operations will be rebuilt into a new independent entity, Multichoice (Pty) Ltd (Licenceco).
The move ensures regulatory compliance while Canal+ paves the way for expanding its video entertainment footprint across Africa.
Canal+ has pledged that the majority of Licenceco's shareholders will become historically underprivileged (HDP) and workers.
The agreement also includes ongoing corporate social responsibility (CSR) initiatives, including skills development and sports development for the audiovisual industry.
Canal+ also ensures that Multichoice Group (MCG) is headquartered in South Africa to promote exports and pursue a secondary inner list of JSE.
Important commitments:
There will be no reductions in the three years since the merger. Licenceco's majority HDP and workers' ownership. A public interest commitment of R26 billion, including local content sourcing and supplier development. Support for SMMES and HDP suppliers in the audiovisual department. Continuous investment in South Africa's news content focused on diversity.
Regulatory approval and market impact
The Competition Commission recommends approval of the merger.
Related: Multicheese wins by French media giant Canal++ Green light
“In a large merger, the committee must evaluate the court and ultimately make recommendations,” said Deputy Chair Hardin Ratoschus.
“The committee is pleased that the terms attached to this merger will fully address the concerns raised during the investigation.”
The Competition Court is now making a final decision.
About the Merger
Canal+: A global media giant involved in content production, advertising and broadcasting.
Multichoice Group (MCG): A leading African pay television operator who manages brands such as DSTV, ShowMax, and SuperSport.
The purpose of the merger is to strengthen the audiovisual sector in South Africa while protecting jobs and promoting economic inclusion.
*This article was first published in sister publication techfinancials.co.za
