French media giant Canal+ has officially taken control of South Africa's MultiChoice, installing a new board and forging a global entertainment powerhouse with Africa at its center.
Why it matters: The $2.02 billion deal creates a formidable competitor to streaming giants like Netflix and Disney, combining Canal+'s 26.4 million subscribers with MultiChoice's 22 million households across Africa.
The new entity will serve more than 40 million subscribers across nearly 70 countries.
The move is a major step in Canal+'s strategy to become a top-five global entertainment player.
The new leadership looks like this:
Maxime Saada, CEO of Canal+, will now serve as the chair of MultiChoice.
David Mignot is the new MultiChoice Group CEO.
Nicolas Dandoy takes over as Chief Financial Officer.
Outgoing MultiChoice CEO Calvo Mawela has been appointed chair of Canal+'s broader African operations.
The deal is part of a plan to "create a global entertainment business with Africa at its heart".
Lessons from the Past: This successful takeover stands in stark contrast to BHP's recently failed bid for Anglo American. While BHP caused controversy by demanding its South African arms be spun-off, Canal+ appears to have learned the lesson.
Canal+ made "strong commitments" to South Africa on job creation and investment in the local creative industry, smoothing the path with regulators.
This approach was crucial for getting approval from the Competition Commission, which considers the "public interest" in such deals.
"It is gratifying to note that foreign investors share our view that South Africa and Africa remain attractive growth markets".
The Bottom Line: The deal still has to navigate South Africa’s Electronic Communications Act, which caps foreign voting rights at 20%.
The companies are finalizing a structure to comply with this and maintain Black empowerment credentials.
Looking ahead, Canal+ is planning a secondary listing on the Johannesburg Stock Exchange (JSE).