by Thinus Ferreira
MultiChoice and the French Canal+ that is attempting an aggressive buyout takeover worth R55.3 billion of the Randburg-based pay-TV company, on Monday made a "joint merger control filing" to South Africa's Competition Commission.
MultiChoice is also communicating with the broadcasting regulator, the Independent Communications Authority of South Africa (Icasa).
In terms of the country's Competition Act, the transaction is classified as a "large merger", which
requires approval by the Competition Tribunal. The Competition
Commission has to consider the filing and refer its recommendations to the
Competition Tribunal.
South Africa's Electronic Communications Act prevents a foreign company like Vivendi's Canal+ from holding a share larger than 20% in a local media company like MultiChoice that operates brands like DStv, M-Net and SuperSport across sub-Saharan Africa.
Yet Canal+ currently has a more than 45.2% shareholding in MultiChoice.
