Omnicom Group moves CCI for IPG merger nod

Omnicom Group has filed a combination request with the Competition Commission of India for the proposed acquisition of the Interpublic Group of Companies, as per media reports.

Under the terms of the agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each share of Interpublic common stock they own.

Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4%, on a fully diluted basis. The transaction is expected to generate annual cost synergies of $750 million.

The Omnicom-IPG merger will introduce new dynamics in the Indian media buying space. The combined entity’s client roster, which includes Tata Motors, Chanel, Amazon, and BMW India, positions it as a formidable challenger, say some marketers.