Everything you need to know about Publicis Omnicom Group
Omnicom and Publicis Groupe have confirmed that they intend to merge and form the world's largest communications, advertising, marketing and digital services company, at a press conference in Paris yesterday afternoon.
What’s the new company going to be called?
Publicis Omnicom Group (note there is no e)
Who’s going to run it?
Initially John Wren, the chief executive of Omnicom, and Maurice Lévy, the chief executive of Publicis Groupe, will run the company as co-chief executives for the first 30 months. After then Lévy, who has been the target of retirement speculation for years, will take the role of non-executive and Wren will continue as sole chief executive.
Where will it be based?
The holding group’s headquarters will be in the Netherlands with operational headquarters in Paris and New York.
How big is the combined company?
The two companies have combined 2012 revenue of $22.7 billion (€17.7 billion) and a combined market capitalization of $35.1 billion (€26.5 billion). Together, Omnicom and Publicis Groupe have 130,000 employees.
It’s such a massive deal; do they expect any regulatory hurdles?
Apparently not. At the press conference Wren said: "The process to get the deal through will take a bit of time but our advisors have not flown any red flags."
Okay then, so when do they expect it to go through?
Either in the fourth quarter of 2013 or during the first three months of 2014.
Will there be any job cuts?
Apparently not. They have highlighted $500 million (£325.0 million) of supposed efficiencies but Lévy declined to comment on any particulars. Wren said the deal was not about job cuts and both men stressed the deal would create opportunities for talented people at both companies.
Are there any potential client conflicts?
Omnicom has a global relationship with PepsiCo, while Publicis Groupe works with Coca-Cola. Both companies work with a number of telecoms companies including AT&T, Sprint, T-Mobile and Verizon. Omnicom has a big relationship with Apple and Publicis Groupe works with Blackberry-owner RIM.
Do the two groups share any clients?
FMCG giants such as Johnson & Johnson, Unilever and Procter & Gamble as well as massive food brands like McDonald's and Mars.
How did the deal come about?
The merger talks "started six months ago with initial conversations" after Lévy suggested it to the Omnicom chief. Wren said the two executives kept asking, "Is this possible? Can it really happen?" and discovered that they could trust each other.
So why did it not break earlier?
Lévy attributed it to the small amount of advisors they had on the deal.
So who were the tight-lipped advisors?
The financial advisors were Moelis & Company for Omnicom and Rothschild for Publicis Groupe. NautaDulith N.V. Jones Day provided counsel to Moelis & Company.
Omnicom’s legal advisors were Latham & Watkins LLP and De Brauw Blackstone Westbroek N.V. The legal advisors to Publicis Groupe were Wachtell, Lipton, Rosen & Katz and Darrois Villey Maillot Brochier.
This article was first published on campaignlive.co.uk
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