Johannesburg – The Competition Commission (the “Committee”) recommends that the Competition Court (the “Code”) be approved for the proposed transaction conditionally, with Group Canal + SAS (the “Canal +”) to win Multi-Chief Group Limited (the “MCG”).
This recommendation follows the committee's investigation into the massive merger notice received on September 30, 2024.
The major acquisition company is Canal+, a French societe par action registered with Regist Ducommerce Etodes Societes in Nanterre, France. Canal+ is a subsidiary of Canal+ SA and is listed in the main markets on the London Stock Exchange.
Canal+ is a company managed by the Ultimate Controller, and by those companies, below referred to as the “acquisition group”.
The committee said in a statement available to Bulrushes on Wednesday (May 21, 2025) that it said, “The Acquisition Group is an international media company involved in the production of audiovisual content, commissioning, supplying advertising services, developing video games and publishing books.”
The committee added: “The South African acquisition group's activities related to this merger assessment are the supply of South African audiovisual content, including MCG.
“The main target company is MCG, a publicly listed company listed on the Johannesburg Stock Exchange (JSE).
MCG is not controlled by any company.
MCG manages many companies, including SuperSportbet (Pty) Ltd, ShowMax SA (Pty) Ltd, DSTV Media Sales (Pty) Ltd, Multichoice Support Services (Pty) Ltd, Multichoice (Pty) Ltd (“Licenceco”), and Electronic Media Network (PTY) LTD (PTY) (PTY) (PTY) (PTY) (PTY) (PTY) (PTY) (PTY). SuperSport International Holdings (Pty) Ltd. All MCG and IT management companies (except Licenceco, which is engraved before the implementation of the proposed transaction) are collectively referred to as “target groups.”
“The Target Group is an audiovisual entertainment service provider operating throughout sub-Saharan Africa,” the committee said.
“What is related to this merger assessment is that the target group is a supplier of Licenceco audiovisual content.
“Licenceco is a station that broadcasts audiovisual content through DSTV services, payroll or subscription-based television offerings.”
The committee said the target group will also provide audiovisual content through its streaming service ShowMax.
The committee said it believes it is unlikely that the proposed transaction will significantly reduce or prevent competition in any market.
However, to recognize the important role that target groups play within South Africa's broader audiovisual ecosystem and address the public interest concerns raised by various stakeholders, the Commission recommends approval of the merger as per several terms.
Conditions include addressing employment concerns, increasing stockholdings for Historically Underprivileged Persons (HDP) and Orbicom and Licenceco workers, commitment to developing a supplier, continued operations from South Africa, multiple television news, and promoting exports, but not limited to addressing employment concerns.
“The parties to the merger have agreed to a suspension of reductions for three years from the date of implementation of the merger,” the committee revealed.
“The parties to the merger have pledged that the majority of Licenceco shareholders will become HDP and workers.
Additionally, the parties agree to continue certain corporate social responsibility initiatives, including the audiovisual industry and sports development skills development. ”
Additionally, Canal+ has committed to pursuing a secondary introverted list of stock exchanges run by JSE Limited, with MCGs being incorporated into South Africa, headquartered, and working to promote exports.
The merged entity also makes a commitment to supplier development, including spending on local audiovisual content, promoting South African audiovisual content in new markets, and sourcing from HDP and small, medium, microenterprise (SMME).
Finally, the parties agreed that Licenceco will continue to procure DSTV's local news content and ensure the diversity of news content it broadcasts.
The total amount of all public interest commitments progressed by the merger parties (based on past MCG spending) is projected to be approximately R26 billion over the next three years.
“In a large merger, the committee must evaluate the court and ultimately make recommendations,” explained Deputy Director Hardin Ratosysus.
“The committee is pleased that the terms attached to this merger fully address the concerns raised during the investigation.
“This issue is currently in front of the court for a final decision.”
