The CMA will determine whether the merger constitutes a “relevant merger situation” under the Enterprise Act 2002.
The UK’s competition watchdog has started a formal investigation of the proposed US $13.25 billion merger between Omnicom and IPG.
The Competition and Markets Authority (CMA) is looking into whether the transaction could lead to a significant lessening of competition.
The move follows an initial invitation to comment that ran from May 7 to 21, seeking feedback from industry stakeholders.
The proposed all-stock deal, first announced in December 2024, would combine two of the world’s largest advertising networks, raising potential concerns about market dominance in sectors such as media buying, creative services and data-driven marketing.
The merged group would consolidate global operations across media buying, creative, and public relations.
In launching the inquiry, the CMA will determine whether the merger constitutes a “relevant merger situation” under the Enterprise Act 2002, a threshold that must be met before assessing its potential competitive impact.
The regulator will also examine whether the combined group could harm competition by restricting client choice or leveraging greater buying power across UK markets.
A decision on whether to escalate the probe to a Phase 2 investigation is due by Wednesday, August 13.
AdNews also reported that the New Zealand Commerce Commission is due to deliver its decision on the merger by Thursday, June 19, while Australia's competition watchdog the ACCC is expected to follow with a ruling by Thursday, July 24.
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