Omnicom Ups Its Clemenger Stake

Omnicom Group has reached an agreement to increase its stake in the Clemenger Group to become a majority shareholder. Clemenger ranks as the largest communications group in Australia and New Zealand.
 
The increased ownership allows BBDO to better utilize Clemenger’s capabilities across the Omnicom agency network. BBDO has been associated with Clemenger since 1973, when the agency became a minority shareholder.
 
“This move creates the opportunity to do more together, and grow faster. As a minority shareholder, it has not been in the interests of either party to extend the companies and individual talents that make up the group beyond the borders of Australia or New Zealand,” said Andrew Robertson, BBDO Worldwide’s CEO, in a statement. “With this move, it will be in everybody’s interest to leverage these companies and this talent across the broader Asia-Pacific region, and elsewhere in the world.”
 
Robertson also noted the high-profile success of the partnership: He said Clemenger BBDO has been named Agency of the Year two years in a row, and Colenso BBDO was recently declared Agency of the Decade by regional trade Campaign Brief.
 
Under the proposed terms, BBDO will increase its stake from 46.67 percent to 73.46 percent of Clemenger Group. Several hundred employee shareholders will continue to hold the remaining 26.56 percent. With shareholder approval, the new agreement will go into effect in early 2011.