The Australian Competition & Consumer Commission (ACCC) has said it is “not opposed” to the proposed acquisition of IPG by Omnicom.
The competition watchdog said the acquisition would be “unlikely to substantially lessen competition” in the world of media buying and marketing and comms services.
“Our investigation found that while the proposed acquisition would result in an increase in the parties’ combined market share, other suppliers of media buying and marketing and communications services would continue to effectively compete with Omnicom after the acquisition,” ACCC commissioner Dr Philip Williams said.
The ACCC found that the remaining advertising, media and communications conglomerates, including WPP, Publicis and Dentsu, will continue to compete with Omnicom after the acquisition, as well as smaller independent providers of these services.
In Australia, Omnicom’s key brands include DDB, TBWA, OMD Worldwide, PHD Media, Clemenger Group and Hearts & Science. Interpublic’s key brands in Australia include IPG Mediabrands, Universal McCann (UM), Initiative, 303 MullenLowe and Octagon.
OMD remains the country’s largest media agency while UM holds the keys to the Federal Government’s media account, the largest biller in the country.
In June, the acquisition was approved in the US and New Zealand with approval by the US’ Federal Trade Commission naturally the larger hurdle.
“We are delighted that our transaction with Interpublic has cleared this significant regulatory hurdle,” said John Wren, chairman and CEO of Omnicom when the acquisition was approved by the FTC.
“This is an important step toward the completion of the proposed acquisition and creating a new era in which we help clients grow with a comprehensive range of marketing and sales solutions, incorporating both creativity and technology. We continue to look forward to obtaining the remaining regulatory approvals and closing in the second half of this year, consistent with our expectations when we announced this transaction.”
B&T has contacted Omnicom and IPG for comment.
