Omnicom and IPG are expected to finally become one, and form the world’s largest advertising group, later this week after the deal cleared its final regulatory hurdle.
The European Commission granted antitrust approval for Omnicom’s acquisition of IPG, marking the last regulatory clearance required to complete the transaction.
“The companies expect to close the transaction by the close of business on Wednesday, creating the world’s leading marketing and sales company, built for intelligent growth,” said Omnicom.
The marriage of rivals brings together the third biggest advertising group, Omnicom, with the fourth, IPG, to form a company with 100,000 people and revenue of $25.6 billion (net revenue of $20 billion), with 57% of that in the US.
Omnicom is confident of exceeding its $US750 million cost synergy target from the deal.
Job cuts have been ongoing as both companies prepare to become one.
At Omnicom the cuts have so far been mainly in its advertising group.
Accounts posted for the company’s September quarter show an increase in operating expenses, including $US38.6 million in repositioning costs, primarily related to “severance actions”.
In the nine months to September, $127.4 million was spent on severance.
Notes to the accounts say these “severance actions” were within Omnicom advertising group, pending the acquisition of IPG.
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