Omnicom Group Inc
Publicis Groupe SA
) recently announced that their proposed merger is expected to
close by the middle of 2014. The deal was initially expected to
be sealed in by the end of March.
The companies have cited some pending regulatory approvals,
including approvals by Russia and the European Union, as a reason
for the delay.
However, the merger deal has been approved by the U.S.
antitrust authorities in the beginning of the month. Also, the
regulatory authorities of Canada, India, Turkey, South Africa and
South Korea, have given the merger their sanction.
Omnicom and Publicis, the world's no. 2 and no. 3 advertising
agencies, respectively, had signed a definitive agreement in July
this year to create Publicis Omnicom Group. Arguably, the
combined company would be globally the biggest communications,
advertising, marketing and digital services company with equity
market capitalization of approximately $35.1 billion.
This merger is anticipated to reopen avenues for growth and
success for the individual companies. The merger will enable the
agencies to make best use of their skilled workforce, diverse
product offerings, and enhanced global footprint to leverage a
list of global and local clients and reap synergistic
The Omnicom-Publicis merger has triggered the possibility of
more consolidations in the industry going forward. The mergers
have resulted in fewer big players in the advertising
Analysts believe that the deal and eventual formation of
Publicis Omnicom Group will topple
) as the no. 1 advertising company. WPP has been a front-runner
in the advertising world since 2008. Moving forward, WPPmay also
strive to regain its leading position by acquiring some other
firms in the industry.
Omnicom currently holds Zacks Rank #4 (Sell). A better-ranked
stock worth considering includes
), holding a Zacks Rank #2 (Buy).
OMNICOM GRP (OMC): Free Stock Analysis Report
PUBLICIS GP-ADR (PUBGY): Get Free Report
WPP PLC (WPPGY): Free Stock Analysis Report
YUME INC (YUME): Free Stock Analysis Report
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