The Australian Competition and Consumer Commission (ACCC) will not oppose Omnicom Group Inc’s proposed acquisition of The Interpublic Group of Companies Inc.
The regulator found the deal is unlikely to substantially lessen competition in the local supply of media buying, marketing, and communications services.
The ACCC noted that large global players such as WPP, Publicis, and Dentsu—as well as independent agencies—will continue to provide competition in the market.
Dr Philip Williams, ACCC Commissioner, said: “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.”
Omnicom and Interpublic operate several major agency brands in Australia, including DDB, OMD, Clemenger Group, IPG Mediabrands, Initiative, and UM.
The ACCC’S approval comes after the acquisition, valued at $20.6 billion, was approved by the US Federal Trade Commission (FTC) last month.
The Omnicom and Interpublic acquisition makes the combined holding company the industry’s deepest bench of marketing talent of over 100,000 practitioners, broadest services including data, advertising and branding.
This move brings together Interpublic agencies such as Initiative, R/GA and UM with Omnicom’s stable including OMD, PHD and BBDO.
Jen Sharpe: ‘The business operations and the commercial realities of these global agencies will significantly impact where investment is directed and how much agency their Australian teams actually have.’
Jen Sharpe, founder and managing director of independent agency Think HQ, recently spoke Mediaweek about the impact of the global merger on Australian agencies and businesses.
She noted that the business operations and commercial realities of the Australian offices of global networked agencies will see “significant impact.”
“We know for the big global networked agencies, it’s very hard for Australian offices to have much agency when they have regional and global mandates and directives.
“I think the creative work itself can still be culturally nuanced, but the business operations and the commercial realities of these global agencies will significantly impact where investment is directed and how much agency their Australian teams actually have.
“Having contemporary, clever creative relies on having a diverse workplace, and I think the industry has shifted a little bit towards understanding and recognising the value of a diverse workplace.
“But if DE&I initiatives are getting cancelled at a head office level, does that mean that we’re going to go back to a less inclusive environment?
“That in itself, I think, has the potential to limit the creative capability of the global agencies in Australia.