At the end of last year Omnicom confirmed an agreement for the acquisition of IPG, A movement that they were advancing would mean the largest marketing talent group in the industry and gather the offer of broader and more innovative products and products in marketing, advertising and communication. Three months later the movement is being subjected to Regulatory scrutiny.
From Omnicom they ensure that the petition is a usual part of the regulatory process
As Omnicom has announced in a statement, both companies have received a Second request for additional information and documentation by the Federal Trade Commission (FTC) of the United States in relation to the operation. From the group they ensure that this second request is a standardized issue and “is part of the regulatory process” usual. “Omnicom and interpublic have collaborated with the FTC throughout the regulatory process and will continue to attend their consultations in the future”, Said the company in a statement.
However, they have taken the opportunity to remember that the end of the operation is subject to the approval of the shareholders of both OMNICOM and Interpublic, to the additional regulatory approvals required and have other usual closing conditions.
Both omnicom and IPG They are optimistic And they expect transaction to close in the second semester of 2025.
However, the second request for information by the FTC could indicate that the government agency is reviewing whether the transaction I could raise competition problems According to US legislation. If so, the agency could delay the operation or, ultimately, block it.
As Adweak reports alluding to figures from FTC itself, fourth parts of the operations. Proposals that are subject to a second application within the framework of their review process prior to the merger are abandoned or voluntarily restructured.
To move on, the operation would give as Result a company with combined revenues of 25.6 billion dollars, In response to data from 2023. Companies expect the transaction to generate 750 million dollars in annual cost synergies, exceeding 18.5 billion dollars of WPP. The entity would also have more than 100,000 employees.
It should be remembered that the resulting company I would keep the name omnicom and would quote under the WTO symbol in the New York Stock Exchange. John Wren would continue to be president and executive director of OMNICOM; while Philippe Krakowsky and Daryl Simm-until the CEO moment of Omnicom Media Group-will perform as co-presidents and OMNICOM operations directors.
