The Competition Commission has announced that it has made recommendation for conditional approval of MultiChoice in an acquired transaction by the France-based company, Canal +.
Canal + is an international media group which focuses on production, commissioning and supply of audio-visual content, advertising services, development of video games and publication of books.
The R55-billion acquisition of MultiChoice Group (MCG) will be subject to several public interest conditions.
Large merger notification
The recommendation follows the Commission’s investigation of the large merger notification received on September 30 2024.
The Competition Commission spokesperson Siyabulela Makunga said: “The merger parties have agreed to a moratorium on retrenchments for a period of three years following the merger implementation date.
“ Moreover, the parties have agreed to continue certain corporate social responsibility initiatives such as skills development in the audio-visual industry and sports development.”
Makunga said that Canal+ has undertaken that MCG will remain incorporated and headquartered in South Africa.
“The merged entity has also made supplier development commitments that include expenditure on local audio-visual content, the promotion of South African audio-visual content in new markets, and procurement from HDPs and small, medium and micro enterprises (SMMEs),” he said.
Subjected to a number of conditions
The commission said the transaction was in no way going to significantly prevent competition. However, the recommended approval is subjected to a number of conditions based on the fact that MultiChoice is the local company that has a big role in the entertainment content in the country.
Makunga said that the total value of all the public interest commitments advanced by the merger parties is projected at a total amount of approximately R26-billion over the next three years.
Deputy Commissioner Hardin Ratshisusu said: “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.”
Canal+, which currently owns 45% of Multichoice’s shares, intends to buy the remaining shares for R125 per share, which totals R55-billion.
MultiChoice Group controls a number of firms in South Africa, including Supersportbet, Showmax SA DSTV Media Sales, MultiChoice Support Services, MultiChoice, Electronic Media Network, Orbicom and SuperSport International Holdings.
