The ACCC will not oppose the proposed acquisition of The Interpublic Group of Companies Inc by Omnicom Group Inc.
Omnicom and Interpublic are both large multinational suppliers of advertising, media and communications services, including media buying and marketing services.
In Australia, Omnicom's key brands include DDB, TBWA, OMD Worldwide, PHD Media, Clemenger Group and Hearts & Science. Interpublic's key brands in Australia include IPG Mediabrands, Universal McCann (UM), Initiative, 303 MullenLowe and Octagon.
The ACCC considers that the proposed acquisition would be unlikely to substantially lessen competition in the supply of media buying services and marketing and communications services.
"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," ACCC Commissioner Dr Philip Williams said.
The ACCC found that the remaining advertising, media and communications conglomerates, including WPP, Publicis and Dentsu, will continue to compete with Omnicom after the acquisition, as well as smaller independent providers of these services.
Further information can be found on the ACCC's public register: Omnicom Group Inc. - The Interpublic Group of Companies Inc.
Note
In considering the proposed acquisition, the ACCC applies the legal test set out in section 50 of the Competition and Consumer Act.
In general terms, section 50 prohibits acquisitions that would have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Universal McCann, a part of the Interpublic Group, is the exclusive provider of media buying services for all Australian Government departments, including the ACCC. The contractual relationship is managed by the Department of Finance.
Background
Omnicom Group Inc. and The Interpublic Group of Companies, Inc are both US-based holding companies of advertising, marketing and communication services. Both companies are listed on the NYSE.
Media buying services involve the planning and purchasing of advertising space from media owners across various media types, including digital platforms and more traditional media advertising, such as television, radio, print, and outdoor platforms (billboards, public transit, etc), on behalf of advertisers.
Marketing and communications services include the creation of advertising material and determining what and how advertising is communicated. Marketing and communication services include design, consumer insights, consultancy, public relations, direct marketing, event management, brand identity and customer relationship management. Providers may offer the entire range of marketing and communication services, or they may specialise in a specific type of marketing or creative service.
