Pulbicis-Omnicom merger to create a new giant in the communications industry
The merger between Publicis and Omnicom has created a new giant in the communications industry. The merger ended the dominance in the market of WPP for four years. This was after the merger beat the latter's US$10.4 billion revenue.
The merger of France's Publicis and America's Omnicom was referred to as the "merger of equals". The deal was between the second biggest marketing group, Omnicom and its third place rival, Publicis. The creation of a multinational firm through the merger has estimated revenue of approximately GBP15 billion and GBP23 billion stock market value.
The new company will be known as the Publicis Omnicom Group and would have dual headquarters in Paris and New York. However, the company will be registered in Netherlands said Maurice Lévy, Publicis' chief executive officer. The reason behind it was for "neutrality" rather than any advantage in tax.
In 2009, WPP overtake Omnicom and became the biggest in the industry. However, with the creation of the new entity from the Publicis-Omnicom merger, WPP's market capitalization of GBP15 billion was said to be overshadowed.
Join the Conversation