Canal+ gets conditional approval for MultiChoice takeover

JOHANNESBURG (Reuters) -South Africa's Competition Tribunal has approved France's Canal+ 35 billion rand ($2 billion) takeover offer for TV broadcaster MultiChoice, subject to agreed conditions, the companies said on Wednesday.

The deal marks a watershed in Africa's media landscape, potentially reshaping the continent's broadcasting system. It signals a strategic consolidation aimed at countering global streaming giants such as Netflix.

The deal is transformative for Canal+ as part of its expansion in Africa, particularly in English-speaking regions, while for MultiChoice, it will provide much-needed capital to supercharge its local content and innovation.

Canal+, which spun off from parent company Vivendi in December, made a firm offer last year of 125 rand in cash per MultiChoice share that it does not own, valuing MultiChoice at about 55 billion rand.

The agreed conditions include a package of guaranteed public interest commitments proposed by the parties. The package supports the participation of firms controlled by Historically Disadvantaged Persons (HDPs) and Small, Micro and Medium Enterprises in the audio-visual industry in South Africa.

"This package will maintain funding for local South African general entertainment and sports content, providing local content creators with a strong foundation for future success," the companies said.

($1 = 17.5543 rand)

(Reporting by Nqobile Dludla in Johannesburg and Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips and Louise Heavens)