Credit: Cytonn Photgraphy via Unsplash
Regulator ACCC will not oppose Omnicom Group’s proposed acquisition of rival holding company Interpublic Group, citing limited impact on competition in Australia’s advertising market.
The regulator said the deal would lift Omnicom’s local market share but not substantially lessen competition.
“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,” said ACCC commissioner Philip Williams.
Despite the consolidation, the ACCC found that a competitive field, including WPP, Publicis Groupe, Dentsu and independents, will remain competitive in the market.
Both global players operate a suite of media buying, marketing and communications agencies locally.
Omnicom’s Australian network includes DDB, TBWA, OMD, PHD, Clemenger Group and Hearts & Science, while Interpublic’s footprint includes IPG Mediabrands, UM, Initiative, 303 MullenLowe and Octagon.
The ACCC’s green light follows a global string of regulatory approvals for the landmark deal first announced in December 2024, including in New Zealand and the USA.
The United Kingdom's Competition and Markets Authority (CMA) is yet to approve the proposed acquisition, a decision is expected by August 13.
The regulator is looking into whether the transaction could lead to a significant lessening of competition.
The CMA will also examine whether the combined group could harm competition by restricting client choice or leveraging greater buying power across UK markets.
The deal, which will create the world’s largest advertising and marketing services company by revenue, is expected to deliver annual cost synergies of up to USD $750 million globally.
In Australia, the merger combines two expansive networks under one roof.
Omnicom has already begun restructuring parts of its global operations to prepare for integration, aligning creative, media and technology units to support a more streamlined post-merger structure.
While the Australian competition watchdog concluded the deal would not substantially lessen competition, U.S. regulators imposed a rare behavioural condition as part of their approval.
The FTC ruled that the merged group must not work together or collude to shift ad spend either towards or away from media outlets based on political or ideological leanings, unless specifically instructed to do so by a client.
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