Ad agencies Omnicom and Publicis scrap merger

Publicis chairman Maurice Lévy and Omnicom president John Wren

Omnicom and Publicis have confirmed they are putting a halt to the merger that would have made them the world’s biggest advertising company.

In this country the merger would have affected creative agencies DDB, .99, Saatchi & Saatchi, Colenso BBDO/Proximity NZ, TouchCAST, Clemenger BBDO and TBWA\Whybin.

Media companies with Omnicom shareholding include OMD, SparkPHD and Dynamo, while Publicis owns both Starcom and Zenith Optimedia.

In a joint statement Publicis chairman Maurice Lévy and Omnicom president John Wren said difficulties arose in completing the transaction within a reasonable timeframe.

"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," they said.

“We have thus jointly decided to proceed along our independent paths. We, of course, remain competitors but maintain a great respect for one another."

The parties released from each other all obligations and there will be no break-up fee.

When the deal was announced last July, Association of New Zealand Advertisers chief executive Lindsay Mouat warned that multinational clients may move where potential conflicts arise.

vyoung@nbr.co.nz


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7012 0.0010 0.14%
AUD 0.9154 -0.0031 -0.34%
EUR 0.6088 -0.0014 -0.23%
GBP 0.4779 -0.0012 -0.25%
HKD 5.4423 0.0142 0.26%
JPY 74.6830 0.3320 0.45%

Commods

Commodity Price Change Time
Gold Index 1292.7 26.930 2016-04-29T00:
Oil Brent 47.4 0.530 2016-04-29T00:
Oil Nymex 45.9 -0.080 2016-04-29T00:
Silver Index 17.8 0.269 2016-04-29T00:

Indices

Symbol Open High Last %
NZX 50 6820.6 6820.6 6820.6 -0.42%
NASDAQ 4786.6 4821.6 4775.4 0.88%
DAX 10091.2 10153.9 10039.0 0.84%
DJI 17783.8 17912.3 17773.6 0.66%
FTSE 6322.4 6322.4 6322.4 -1.27%
HKSE 21215.2 21235.4 21388.0 -1.50%
NI225 16357.1 16357.1 16666.0 -3.11%

Most listened to

What's the story behind the story? Our special feature audio offers a mix of comment from journalists, experts and panel discussions.
  1. Grant Thornton’s Pam Newlove on the sugar tax
  2. NBR’s Nevil Gibson discusses the 40th anniversary of Singapore Airlines in New Zealand
  3. Jason Paris on Lightbox, and avoiding the 'race to the bottom'
  4. The idea Hilary Barry’s resignation will result in boardroom bloodshed is arrant nonsense, says NBR’s Nick Grant
  5. The Icehouse’s Andy Hamilton says GIVs should attract American billionaires like Julian Robertson