South Africa's competition authority announced on Wednesday that it has approved the proposed acquisition of MultiChoice, Africa's largest pay-TV enterprise, by French media conglomerate Canal+. This significant development brings Canal+'s long-standing ambition to expand its footprint across the African continent closer to fruition. The merger, which has been under consideration for nearly a year, now awaits final approval from the commission's Competition Tribunal.

A Continental Media Powerhouse in the Making

Canal+ currently holds approximately 45 percent of MultiChoice’s shares. Last year, the French group put forward an offer to acquire the remaining shares for 125 rand (equivalent to 6.16 euros) per share.

The strategic rationale behind the merger is clear: to combine two dominant forces in African pay television. Canal+ boasts a presence in 25 African countries through 16 subsidiaries, serving a subscriber base of eight million. MultiChoice, on the other hand, operates in 50 countries across sub-Saharan Africa and reports a significantly larger subscriber base of 19.3 million. Its portfolio includes SuperSport, Africa’s premier sports broadcaster, and the widely recognized DStv satellite television service.

Maxime Saada, CEO of Canal+, expressed enthusiasm for the regulatory approval, stating, "This is a major step forward in our ambition to create a global media and entertainment company with Africa at its heart."

Conditions for Approval: Public Interest and Empowerment

The South African competition commission's approval of the merger is not unconditional. It is subject to a robust set of public-interest conditions valued at approximately 26 billion rand over a three-year period. A key condition aims to address historical inequalities by increasing the shareholding of individuals disadvantaged under South Africa’s white-minority apartheid regime.

Furthermore, the approval mandates that MultiChoice's headquarters must be maintained within South Africa. This condition aims to safeguard local employment, foster continued investment in the South African economy, and ensure that the benefits of MultiChoice's operations continue to accrue within the country.

While a date for the Competition Tribunal’s final decision on the merger has not yet been announced, Canal+ has indicated its aim to complete the deal by early October. This proposed acquisition marks a pivotal moment for the African media landscape, promising to reshape competition and potentially influence content development and accessibility across the continent.