Omnicom Group thinks that cultural differences doomed plans for Omnicom and Publicis Groupe to merge, but Publicis Groupe believes inequality was the culprit.
Publicis Omnicom Group
Omnicom Group CEO John Wren acknowledged this morning that the corporate differences between his company and Publicis Groupe were greater than he expected, as he explained to industry analysts why the two companies won't merge after all.
Publicis Groupe, in the process of a merger with Omnicom Group, said organic growth was flat in the fourth quarter of last year, in contrast to a 3 percent rise in the first nine months.
The European Commission signed off on the pending merger between Publicis Groupe and Omnicom, further clearing the way for the creation of the industry’s largest holding company.
The completion of the Publicis Groupe-Omnicom merger will likely be pushed back to the second quarter, pending regulatory approvals. But that delay is doing little to stem speculation about which executives will influence the integration that will form the ad industry’s largest player. Until the deal is done, the two are still competitors.
The completion of the Publicis Omnicom merger may be pushed back into the second quarter of next year, a delay from the first-quarter close originally planned when the transaction was announced in July.
New York City comptroller John Liu has renewed a previous call for Omnicom Group and Publicis Groupe to disclose the numbers of minorities and women in their ranks, amid the planned merger of the two holding companies.
The claims of merger partners Omnicom Group and Publicis Groupe notwithstanding, WPP Group CEO Martin Sorrell expects the mega-merger to result in consolidation among Omnicom and Publicis Groupe shops.