Final regulator clears Omnicom IPG merger EU approval milestone

Omnicom Group and The Interpublic Group of Companies are close to completing their $13.25 billion merger after securing the final major regulatory approval. The European Commission announced on 24 November that it has granted unconditional clearance for Omnicom’s acquisition of Interpublic, clearing the last hurdle for the all stock transaction.

With this approval in place, both companies expect to close the merger by the end of business on Wednesday. First announced in December last year, the deal will bring together Omnicom, currently the third largest media buyer, and Interpublic, the fourth largest, creating the largest global marketing and sales company.

European regulators concluded that the merger would not reduce competition in a significant way, allowing the transaction to move forward without conditions.

The $13.25 billion deal brings together two long standing players that have competed for global accounts while building strong capabilities in creative, media, commerce, health and data. By combining their scale, the new group aims to strengthen its position against agency rivals as well as major technology platforms that offer advertising and marketing services directly to brands.

Both companies bring extensive networks across creative agencies, media firms, digital units and customer experience specialists. After the merger is completed, integration work will focus on areas such as data platforms, technology tools and commerce offerings.

Clients and employees will be watching closely as the companies outline their leadership structure, operating model and brand plans.

The merger highlights how holding companies are responding to pressure from marketers who want simpler and more connected services, and from technology firms that operate closer to the point of purchase. As the business of marketing changes quickly, companies are working to build capabilities that can operate at a larger scale.

Becoming the largest advertising group gives the combined Omnicom and Interpublic network greater leverage in media buying and technology investment. At the same time, it raises questions about how smoothly the organisations will integrate and how they will manage potential client conflicts. The coming months will show how well the merged company turns its size into speed and delivers better results in a rapidly changing marketplace.

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