Dentsu Inc. has cleared the last hurdle in its bid to acquire the Aegis Group plc after it gained clearance from Chinese anti-trust authorities for the nearly $5 billion deal.
The Tokyo-based advertising giant, which announced its acquisition of the global media network last July, had originally expected to complete it in the fourth quarter.
The combination of Dentsu and Aegis in China will create the country’s third-largest industry company, according to Dentsu.
Following the close, Dentsu has unveiled a new London-based entity, Dentsu Aegis Network Ltd., which will oversee the Dentsu agency outside of Japan and Aegis’ media operations globally.
Jerry Buhlman has been named CEO of the Dentsu Aegis, in addition to his existing role as head of Aegis. Tim Andree, svp of Dentsu Inc. and global CEO of Dentsu, adds the title of executive chairman of Dentsu Aegis. Dentsu and Aegis will continue to operate separately under the oversight of the Dentsu Aegis management team and board of directors.
The companies that comprised the former Aegis Group are now part of Dentsu Aegis. They include Carat, iProspect, Isobar, Posterscope, Vizeum and Aztec.
While Dentsu has a dominant position in its home market, it has wanted to expand globally for future growth. The combination with Aegis now creates a company with a presence in 110 countries—including affiliates— and employs 36,000 people.