Publicis Omnicom merger terminated
The massive proposed merger between holding groups Publicis and Omnicom has been called off.
The deal, which would have created the largest advertising holding group in the world with assets worth more than US$30 billion eclipsing WPP, hit the rocks in the US with a slow pace of progress and trouble getting regulatory approval in some countries behind the decision.
Omnicom has this morning released a press statement saying the two groups had agreed to “terminate their agreed merger of equals”. The move follows reports emerging from the US in recent weeks of battles over who would control the group, as well as tax and regulatory issues in several countries, including China.
Maurice Lévy, chairman and CEO of Publicis Groupe, and John Wren, president and CEO of Omnicom Group, stated: “The challenges that still remained to be overcome, in addition to the slow pace of progress, created a level of uncertainty detrimental to the interests of both groups and their employees, clients and shareholders.”
“We have thus jointly decided to proceed along our independent paths. We, of course, remain competitors, but maintain a great respect for one another,” he said.
The deal would have brought an end to the dominance of WPP in Asia, Mumbrella was told soon after the merger was announced in July last year.
Regulatory approval for the merger was approved in Korea, India and other countries in November.
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