ACCC greenlights $21b Omnicom, Interpublic deal
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The news: The Australian Competition and Consumer Commission (ACCC) will not oppose global ad agency Omnicom Group's proposed USD13.5 billion ($20.8 billion) all-stock takeover of rival The Interpublic Group of Companies.
The context: Both Omnicom and Interpublic are large New York stock exchange-listed multinationals that provide advertising, media and communications services.
Omnicon brands in Australia include DDB, TBWA, OMD Worldwide, PHD Media, Clemenger Group and Hearts & Science. Interpublic's brands include PG Mediabrands, Universal McCann (UM), Initiative, 303 MullenLowe and Octagon.
The competition watchdog said the proposed acquisition was “unlikely to substantially lessen competition in the supply of media buying services and marketing and communications services”.
The deal was given the go-ahead by the US Federal Trade Commission in June on the condition that the companies do not collude or coordinate advertising spend based on political or ideological views.
What they said: “Our investigation found that while the proposed acquisition would result in an increase in the parties’ combined market share, other suppliers of media buying and marketing and communications services would continue to effectively compete with Omnicom after the acquisition,” ACCC Commissioner Philip Williams said.
The sources: ACCC media release, Reuters, FTC media release
