Johannesburg – Canal+ has agreed to a moratorium on retrenchments for three years at MultiChoice Group following the merger implementation date.
Sipho Maseko and Sonja De Bruyn have joined a Broad-Based Black Economic Empowerment (BBBEE) consortium that played a crucial role in facilitating Canal+’s acquisition of MultiChoice Group.
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As part of the transaction, MultiChoice South Africa’s broadcasting licence operations will be restructured into a new independent entity, MultiChoice (Pty) Ltd (LicenceCo).
This move ensures regulatory compliance while paving the way for Canal+ to expand its video entertainment footprint across Africa.
Canal+ has committed that the majority of LicenceCo’s shareholders will be Historically Disadvantaged Persons (HDPs) and workers.
The agreement also includes continued corporate social responsibility (CSR) initiatives, such as skills development in the audiovisual industry and sports development.
Canal+ has further assured that MultiChoice Group (MCG) will remain headquartered in South Africa, promote exports, and pursue a secondary inward listing on the JSE.
Key Commitments:
- No retrenchments for three years post-merger.
- Majority HDP and worker ownership in LicenceCo.
- R26 billion in public interest commitments, including local content procurement and supplier development.
- Support for SMMEs and HDP suppliers in the audiovisual sector.
- Continued investment in South African news content with a focus on diversity.
Regulatory Approval & Market Impact
The Competition Commission has recommended the merger’s approval.
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“In large mergers, the Commission is required to assess and ultimately make a recommendation to the Tribunal,” said Deputy Commissioner Hardin Ratshisusu
“The Commission is satisfied that the conditions attached to this merger sufficiently address the concerns raised during the investigation.”
The Competition Tribunal will now make the final determination.
About the Merger Parties
Canal+: A global media giant involved in content production, advertising, and broadcasting.
MultiChoice Group (MCG): A leading African pay-TV operator, controlling brands like DStv, Showmax, and SuperSport.
This merger aims to strengthen South Africa’s audiovisual sector while safeguarding jobs and promoting economic inclusion.
*This article first appeared in our sister publication techfinancials.co.za
