M&C Saatchi discloses collapse of $1 Australian sale in half-year results

M&C Saatchi’s Australian operations were set to be sold off for just AUD $1 before the deal collapsed earlier in September.

In the global ad agency’s half-year results, posted on the London Stock Exchange, the Group signed a non-binding indicative term sheet on July 12 to sell the business of M&C Saatchi Australia for a sale price of $1, which was expected to be completed on 1 October 2026, prior to the deal falling through.

According to the LSE post, the Group could not finalise “acceptable terms for the sale of the Australian business, and as a result, the sale is no longer progressing.”

READ MORE: What M&C Saatchi's closure teaches us about the advertising agencies' business

The local team is in discussions with clients about ongoing work and the potential to transition work to another part of the wider agency. 

The Group’s LSE post also noted that it is taking action to simplify global personnel structures to empower regional creative teams and support long-term profitability.

The LSE posting did not suggest what the next steps are for the Australian business.

Speaking about the overall state of M&C Saatchi, Heather Rabbatts, Executive Chair, said: “The tough trading environment experienced in the second half of 2025 continued into the first quarter, but trading has progressively improved since, with the second quarter returning to modest top-line growth.

“The Group remains focused on improving operational effectiveness, simplifying the business and improving sustainable profitability.

“Notwithstanding market conditions, we are confident in delivering LFL net revenue and operating profit growth for the full year 2026, in line with market expectations, supported by the Company’s unique market position across Citizen and Commercial expertise, collaborative growth opportunities and AI-enabled data.

“The Board believes the Company is well positioned to unlock intrinsic value and create future value for shareholders.”