South Africa’s M&A Landscape – A Strategic Crossroads in Africa

Publish Date: 27th May 2025

South Africa, Africa’s most industrialized economy, continues to serve as the continent’s hub for mergers and acquisitions (M&A), despite facing persistent economic challenges. With GDP growth hovering around 1.2% in 2023 and unemployment exceeding 32%, the country’s M&A activity remains resilient, driven by strategic consolidations and cross-border ambitions. In 2023, South Africa recorded 118 M&A deals, leading the continent in both deal volume and value. This momentum persisted into 2024, with significant transactions such as Canal+’s acquisition of MultiChoice Group, valued at approximately $2.6 billion.

Regulatory Landscape: Navigating South Africa’s Unique Framework

South Africa’s M&A environment is shaped by a robust regulatory framework that distinguishes it from many other jurisdictions. The Competition Commission plays a pivotal role, not only assessing the competitive implications of transactions but also considering public interest factors, including employment and ownership by historically disadvantaged persons. This dual focus was evident in the Competition Tribunal’s 2025 decision to block Vodacom’s proposed R13 billion acquisition of a 30% stake in Maziv, citing concerns over reduced competition in the fiber market.

Chronology of Major M&A Deals

South Africa has witnessed several landmark M&A transactions across various sectors. Below is a chronological list of 15 significant deals:

2005: Barclays acquires a majority stake in Absa Group for $5.5 billion.
2010: Walmart acquires 51% of Massmart for $2.4 billion.
2013: Vodafone increases its stake in Vodacom to 65% for $2.6 billion.
2013: AB InBev acquires SABMiller for $100 billion, the largest deal in African history.
2014: PepsiCo acquires Pioneer Foods for R25 billion.
2016: Old Mutual completes its managed separation, listing its African operations separately.
2018: Naspers spins off MultiChoice Group, listing it on the JSE.
2019: Remgro and CIVH acquire Vumatel, expanding their fiber network footprint.
2020: Heineken announces plans to acquire Distell Group, completed in 2023.
2021: Access Bank acquires Grobank, rebranding it as Access Bank South Africa.
2022: Actis acquires a controlling stake in Swiftnet from Telkom for R6.7 billion.
2023: Life Healthcare sells Alliance Medical Group to iCON Infrastructure for R19.7 billion.
2023: Gold Fields acquires Osisko Mining for $1.39 billion.
2023: AngloGold Ashanti acquires Centamin for $2.5 billion.
2023: Canal+ increases its stake in MultiChoice to 31.7%, initiating a full acquisition bid.

Recent Developments: M&A Activity in 2024 and 2025

The years 2024 and 2025 have seen continued M&A activity, particularly in the finance, telecom, and mining sectors:

Finance: Access Bank’s acquisition of Bidvest Bank in December 2024 for R2.8 billion expanded its retail network in South Africa.
Telecom: In March 2024, Actis, alongside Royal Bafokeng Holdings, acquired a 70% stake in Swiftnet from Telkom for R6.7 billion, marking a significant investment in telecom infrastructure.
Mining: Harmony Gold’s acquisition of MAC Copper for $1.6 billion in 2025 signifies a strategic move to diversify its portfolio beyond South Africa.
Media: Canal+’s ongoing acquisition of MultiChoice Group, with a revised offer of R125 per share, aims to consolidate its presence in the African media landscape.

Strategic Decisions: Successes and Challenges

Several M&A transactions have yielded positive outcomes:

Successes:
- Access Bank’s Expansion: The acquisition of Bidvest Bank has bolstered Access Bank’s footprint in South Africa, enhancing its retail banking capabilities.
- Actis and Swiftnet: The investment in Swiftnet aligns with global trends of telecom operators divesting tower assets, providing Actis with a stable, long-term revenue stream.
Challenges:
- Vodacom and Maziv: The blocked acquisition due to competition concerns highlights the stringent regulatory environment and the importance of aligning deals with public interest considerations.
- Canal+ and MultiChoice: The acquisition faces regulatory hurdles, particularly regarding foreign ownership limits in broadcasting licenses, necessitating structural adjustments to comply with local laws.

Sectoral Focus: Finance, Telecom, and Mining

Finance: The sector continues to attract significant investment, with banks like Access Bank leveraging acquisitions to expand their African footprint.
Telecom: Infrastructure investments, such as the Swiftnet deal, underscore the growing demand for connectivity and the strategic importance of telecom assets.
Mining: Despite global shifts towards renewable energy, mining remains a cornerstone of South Africa’s economy, with companies like Harmony Gold seeking to diversify geographically.

South Africa: Africa’s Cross-Border M&A Leader

South Africa’s sophisticated financial markets, robust legal framework, and strategic geographic position make it a preferred gateway for cross-border M&A in Africa. The country’s active participation in the African Continental Free Trade Area (AfCFTA) further enhances its appeal by facilitating intra-African trade and investment.

Future Outlook: South Africa’s M&A Trajectory

Looking ahead, South Africa’s M&A landscape is expected to remain dynamic despite economic headwinds. Structural reforms in energy, logistics, and competition policy, alongside increasing investor appetite for high-growth African assets, will likely fuel deal-making across key sectors.

The finance and telecom industries are poised for further consolidation, especially as fintechs and digital infrastructure attract private equity and strategic interest. In mining, a global pivot toward critical minerals for the green transition will drive both local and cross-border activity. Regulatory scrutiny will continue to shape deal outcomes, particularly in sectors deemed vital to national interests.

Nonetheless, South Africa’s mature capital markets, deep pool of professional services, and gateway position into the rest of Africa cement its role as the continent’s M&A epicenter. As geopolitical shifts and global economic trends unfold, South African firms with strong balance sheets and regional ambitions are well-positioned to capitalize on emerging opportunities through strategic acquisitions.