Canal+ has received a significant boost in its efforts to expand in Africa. The South African Competition Commission has recommended approval for its $2.82 billion acquisition of MultiChoice, the continent’s leading pay-TV operator. This approval is vital for Canal+, particularly as it grapples with challenges in the European market, which recently marked the closure of its C8 channel.
The commission’s endorsement is a crucial milestone in the lengthy acquisition process. It stated that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. To comply with South African regulations, which prevent foreign companies from holding more than 20% of voting rights in a broadcaster, Canal+ has established LicenceCo, an independent entity owned by a black South African holding company.
Maxime Saada, Canal+’s chief executive, expressed optimism over the commission’s recommendation, which signifies a key step in Canal+’s goal of creating a global media and entertainment powerhouse with a strong African focus. The Competition Tribunal has yet to set a date for its final decision, but Canal+ is hopeful that the deal will be finalised by October 8, with the acquisition valued at approximately 125 rand per share.
With around eight million subscribers across 25 African countries, Canal+ is seeing a rise in revenues on the continent even as its European subscriber base declines. Acquiring MultiChoice, which retains 19.3 million customers despite losing four million subscribers in under two years, would significantly bolster Canal+’s position in English-speaking Africa, particularly in key markets like Angola.
In an era where streaming platforms are gaining traction, this acquisition could solidify Canal+’s competitive edge in the evolving media landscape, allowing it to tap into Africa’s projected growth to two billion people by 2050.
