Omnicom, Publicis call off proposed USD 35 billion merger
The proposed USD 35 billion merger between Omnicom Group and Publicis Groupe has been called off.
Publicis Groupe and Omnicom jointly announced that they have terminated their proposed merger of equals by mutual agreement, in view of difficulties in completing the transaction within a reasonable timeframe. The parties have released each other from all obligations with respect to the proposed transaction, and no termination fees will be payable by either party.
The deal, dubbed as ‘merger of equals’, was ridden by issues over position and power including tax and regulatory approvals.
This decision was unanimously approved by the Management Board and the Supervisory Board of
Publicis Groupe and the Board of Directors of Omnicom Group.
In a joint statement, Maurice Lévy, Chairman and Chief Executive Officer of Publicis Groupe, and John Wren, President and Chief Executive Officer of Omnicom Group, stated: “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. 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 tie-up, announced last July was expected to close by early 2014.
The megamerger would have created the world’s largest ad holding company replacing WPP from that position.
The companies had made clear it was to be a merger of equals, where the shareholders would each receive about 50 per cent of the equity in the new company Publicis Omnicom Group, and the two CEOs would share the top job in a pre-agreed arrangement.
