The deal would see Omnicom acquire IPG in an all-stock transaction.
Australia’s competition watchdog has confirmed the next phase of its review into Omnicom’s proposed acquisition of IPG, after closing stakeholder submissions this week.
The ACCC began its review of the proposed takeover on May 13, following the companies’ agreement in December 2024.
"We are looking at the competitive impact of the acquisition on the media buying services and marketing and communication services provided to advertisers as well as on the competitive impact on the purchase of advertising opportunities on Australia media outlets," an ACCC spokesperson told AdNews.
The ACCC declined to comment on the number or nature of submissions received as part of the informal review. A provisional date for an announcement of findings has been set for July 24.
The deal, valued about AUD $19.875 billion, would see Omnicom acquire IPG in an all-stock transaction, combining some of the world’s largest advertising and marketing conglomerates.
The ACCC’s review will assess whether the deal would substantially lessen competition in Australia’s advertising and media sectors.
Omnicom operates a portfolio of agencies including DDB, TBWA, OMD Worldwide, PHD Media, Clemenger Group and Hearts & Science.
And IPG owns a range of brands such as IPG Mediabrands, Initiative, UM, Mediahub, Kinesso, Acxiom, Reprise, Octagon and 303 MullenLowe.
In the Australian market, the ACCC has identified significant overlap in the supply of media buying and marketing and communications services.
These include media planning and purchasing across TV, radio, digital, print, and outdoor advertising, as well as public relations, event management, consulting, brand strategy and related services.
The competition watchdog sought views on several fronts including how directly the two firms compete in selling and purchasing advertising space, the degree of substitution offered by other players in the market and the potential effects on prices, service quality, and client choice.
The companies have stated the merger would deliver efficiencies and cost savings, estimated at AUD $1.125 billion annually, primarily through operational streamlining.
The merger remains subject to regulatory approvals globally and is expected to complete in the second half of 2025, pending final clearances.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.