French media giant Canal+ can acquire MultiChoice with conditions

This follows the Commission’s investigation of the large merger notification submitted on 30 September 2024, signalling a major development in the local and international media landscape.

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Conditions need to be met

The Commission 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 a number of conditions, including 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.

“In large mergers the Commission is required to assess and to ultimately make a recommendation to the Tribunal. 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,” said deputy commissioner Hardin Ratshisusu.

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According to the Commission, the merger parties have agreed to a moratorium on retrenchments for a period of three years following the merger implementation date. The merger parties have also committed that the majority of LicenceCo’s shareholders will be HDPs and workers.

Corporate responsibility

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 MultiChoice 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 MultiChoice) is projected at a total amount of approximately R26bn over the next three years.