Two of the world's largest advertising holding companies – Omnicom and Publicis – have agreed to merge into the world's largest agency with a market value expected to exceed $US35 billion ($37.9 billion).
The groups have said they are joining in a “merger of equals" that will create the world's largest advertising company.
The new entity will be the world's largest ad group by revenue, surpassing Sir Martin Sorrell’s WPP as the number one network.
Paris-based Publicis and New York-based Omnicom will each hold about 50 percent of the new company, Publicis Omnicom Group.
The merger will bring under one roof agencies that include Omnicom’s BBDO Worldwide and Publicis’s Leo Burnett and Saatchi& Saatchi, extending its market reach globally.
Publicis Omnicom Group has said said the merger will also give the owners more influence to negotiate for their clients better ad rates for media placements.
The group will be lead by the current chief executives, Maurice Levy of Publicis and John Wren of Omnicom.
The new holding company will be based in the Netherlands, while the operating offices will remain in Paris and New York.