The French Pay TV Group, Canal + , has received anti-trust approval to finalize its long-gestated takeover of MultiChoice Group, the South African Pay TV company.
A statement was jointly released by the two companies on Wednesday saying that a South African competition tribunal had confirmed the Canal+ takeover of MultiChoice, which is listed at the Johannesburg Stock Exchange.
Canal+, which already owns over a third of MultiChoice, has agreed to a “robust package of guaranteed public interest commitments” required by the anti-trust body, including the “participation of firms controlled by historically disadvantaged persons (“HDPs”) and small, micro and medium Enterprises” based in South Africa.
The conditions also call for Canal+ to invest in local South African entertainment and sports content, as well as financially back local creators.
Under the terms of the deal, the French Group has agreed pay 35 billion rand ($2 billion) to acquire MultiChoice Group which is valued at around 55 billion rand ($3.1 billion).
“The approval by South Africa’s Competition Tribunal marks the final stage in the South African competition process and clears the way for us to conclude the transaction in line with our previously communicated timeline,” said Maxime Saada, Canal+ CEO.
“It is a hugely positive step forward in our journey to bring together two iconic media and entertainment companies and create a true champion for Africa,” Saada said, adding the “potential this transaction unlocks for all stakeholders, notably South African consumers, creative businesses and the nation’s sporting ecosystem.”
Calvo Mawela, MultiChoice Group CEO said the anti-trust approval “marks a significant milestone and is a major step forward for both companies.”
“It reflects the strength of our strategic vision and our ongoing commitment to continue uplifting the communities where we operate (to build) a global media and entertainment company with Africa at its heart,” Mawela said.
The deal is on track to be completed on October 8.
