Omnicom seeks CCI nod for acquisition of Interpublic Group
Under the proposed transaction, Omnicom’s wholly owned subsidiary, EXT Subsidiary Inc. (Omnicom Merger Sub), will merge with IPG, resulting in IPG becoming a wholly owned subsidiary of Omnicom
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The global marketing and advertising company Omnicom Group Inc. has filed a combination request with the Competition Commission of India (CCI) for its proposed acquisition of The Interpublic Group of Companies, Inc. (IPG). The blockbuster deal values the combined entity at approximately $30 billion, with $65 billion in global media billings.
Under the proposed transaction, Omnicom’s wholly owned subsidiary, EXT Subsidiary Inc. (Omnicom Merger Sub), will merge with IPG, resulting in IPG becoming a wholly owned subsidiary of Omnicom. The merger will see Omnicom Merger Sub cease to exist, while IPG continues its operations under the new ownership structure.
The merger, expected to close in the second half of 2025, is subject to regulatory approvals worldwide, including from the CCI, as well as shareholder votes from both companies.
Late last year, in a joint statement, the companies described the move as a “tremendous strategic opportunity” for stakeholders, underscoring their commitment to enhancing platform capabilities and talent as part of a far-reaching network expansion. The merger promises to create a "uniquely comprehensive portfolio of services," positioning the new entity as a powerful "marketing and sales partner" in a rapidly changing world. With the industry evolving at breakneck speed, the newly formed company aims to leverage its scale and resources to meet the demands of a dynamic market.
The announcement comes more than a decade after Omnicom attempted, but ultimately failed, to merge with the French Publicis Groupe in a $35 billion deal that collapsed in 2014 due to disagreements over terms.
Omnicom CEO John Wren expressed confidence during a recent investor call, stating, “We’re prepared to address any regulatory concerns and believe this won’t pose significant issues.”
Omnicom's takeover of IPG will likely be complete by 2025's second half and potentially trigger a series of mini-mergers among its global network of agency brands. The combined company will retain the Omnicom name, with Omnicom Group's long-serving CEO John Wren at the helm. Philippe Krakowsky, current IPG CEO who assumed the role in 2021 will be Co-President and COO of Omnicom, sharing the dual title with Daryl Simm. Krakowsky will also be Co-Chair of the Integration Committee post-merger.
