Ad agencies Omnicom and Publicis scrap merger

Publicis chairman Maurice Lévy and Omnicom president John Wren

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

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 0.6689 0.0006 0.09%
AUD 0.8913 -0.0011 -0.12%
EUR 0.6066 -0.0013 -0.21%
GBP 0.4301 0.0004 0.09%
HKD 5.1860 0.0042 0.08%
JPY 82.0660 0.2830 0.35%

Commods

Commodity Price Change Time
Gold Index 1163.5 -2.500 2015-07-02T00:
Oil Brent 62.6 -0.180 2015-07-02T00:
Oil Nymex 56.9 -0.010 2015-07-02T00:
Silver Index 15.6 -0.015 2015-07-02T00:

Indices

Symbol Open High Last %
NZX 50 5840.9 5840.9 5840.9 -1.10%
NASDAQ 4963.8 5020.7 5009.2 -0.31%
DAX 10825.1 10996.5 11058.4 -1.52%
DJI 17728.1 17734.4 17730.1 -0.24%
FTSE 6585.8 6585.8 6585.8 -0.76%
HKSE 26084.0 26261.5 26064.1 -3.18%
NI225 20200.2 20310.7 20539.8 -2.08%