Publicis and Omnicom cancel $35 billion merger

Business -

The companies say that the merger, which was announced in July 2013, has been canceled due to "difficulties in completing the transaction within a reasonable timeframe."

Circa News
Copyright 2014 Reuters
Copyright 2014 Reuters

"There was no one factor. There are a lot of complex issues we haven't resolved. There are strong corporate cultures in both companies that delayed us for reaching an agreement. There was no clear finish line in sight and uncertainty is never a good thing when you are in the personal service business." John Wren, Omnicom Group CEO

Publicis and Omnicom said on May 8 that a merger between the companies had been called off nine after it was originally announced. Neither company will pay a termination fee. In addition to reported problems between the companies, China had not yet approved the deal.

Paris, France

Paris-based Publicis Groupe and Omnicom Group, based in New York, announced that the two advertising giants would merge operations, which would have created the world's largest ad firm.

The merged company would have been the world's largest public relations and advertising company, in terms of both market value and annual revenue, and would have had a stock market value of $31.5 billion (as of July 2013) with 130,000 employees worldwide.

Facebook and Publicis Groupe reached a broad-ranging deal on May 19 that AdAge reported as being worth $500 million. The deal will focus on "co-creation of product around data, video and images, including core Facebook and Instagram."

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