Publicis, Omnicom agree to a merger

Publicis chief Maurice Levy says it is a merger of equals. Photo: Reuters

Publicis chief Maurice Levy says it is a merger of equals. Photo: Reuters

Published Jul 29, 2013

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Paris - Advertising companies Publicis and Omnicom unveiled plans yesterday to merge to create the biggest advertising group, worth $35.1 billion (R343bn).

Publicis and Omnicom shareholders will each hold about 50 percent of the new company’s equity in the deal, which the companies presented as a “merger of equals”.

Publicis said the transaction was expected to create “significant value for shareholders”, with expected synergies of $500 million a year. The merged group would keep its head offices in Paris and New York.

Publicis said the deal, which had been unanimously approved by the boards of both companies, was expected to close in the fourth quarter or the first quarter of next year.

Publicis chief executive Maurice Levy said he and Omnicom head John Wren “have conceived this merger to benefit our clients by bringing together the most comprehensive offering of analog and digital services”.

Wren and Levy would be joint chief executives for an initial integration and development period of 30 months, after which Levy would become non-executive chairman and Wren sole chief executive, Publicis said.

Publicis shareholders will receive one newly issued ordinary share of Netherlands-based holding company Publicis Omnicom Group for each Publicis share they own, plus a special dividend of E1 (R13) a share.

Omnicom shareholders will receive 0.813 newly issued ordinary shares of Publicis Omnicom Group for each Omnicom share they own, together with a special dividend of $2 a share. They will also receive up to two regular quarterly dividends of 40 US cents a share. - Reuters

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