The Competition Commission has recommended the approval of Canal+’s acquisition of MultiChoice
Image: Karen Sandison/Independent Newspapers
The Competition Commission recommended the approval of Canal+’s acquisition of MultiChoice, with conditions including job protection and increased black ownership.
The Commission said the merger must meet public interest conditions to protect jobs, promote inclusion, and support local content.
"The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any market," the Commission said in a statement on Wednesday.
"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," it said.
"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."
The recommendation follows the Commission’s investigation of a large merger notification received on September 30, 2024.
According to reports, Canal+ proposed an all-cash offer of R125 per share, valuing MultiChoice at around R55 billion.
The statement added that merger parties have agreed to a moratorium on retrenchments for a period of three years following the merger implementation.
"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.
"Moreover, the parties have agreed to continue certain corporate social responsibility initiatives such as skills development in the audiovisual industry and sports development," the statement added.
The Commission also stressed that "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 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 Commission said.
"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".
The Commission noted that its role was to "assess and ultimately make a recommendation," adding that the matter is now before the Tribunal for final determination.
mthobisi.nozulela@iol.co.za
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