Omnicom Merger With Publicis Creates Ad Giant

Omnicom Group Inc. and Publicis Groupe SA plan to merge to create the world's largest advertising firm.

The new company, will be called Publicis Omnicom Group, will be worth more than $30 billion.

It will be traded in New York and Paris.

Omnicom Chief Executive John Wren and Publicis CEO Levy will jointly lead the new company for the first 30 months, then Mr Levy will become non-executive chairman and Mr Wren CEO.

The new company will have combined sales of nearly $23 billion and 130,000 employees, taking over the current London-based industry leader WPP PLC.

The transaction- presented as a "merger of equals" - brings together Publicis brands such as Saatchi & Saatchi and Leo Burnett with Omnicom's BBDO Worldwide and DDB Worldwide.

"This is a new company for a new world," Mr Levy said.

The combined group will employ 130,000 people

"It will be able to face the exponential development of new internet giants like Facebook and Google, changing consumer behaviour, the explosion of big data, as well as handle the blurring of roles of all the players in the market."

The two veteran CEOs chose the neutral territory of the Netherlands for the new holding company.

The move is aimed at bolstering the companies' focus on growing Asian and Latin American markets such as China and Brazil to offset weak growth in European markets.

However, the decrease in competition could present regulatory hurdles in the US and Europe.

Client conflicts also could be an issue, as rivals such as Coca-Cola Co., PepsiCo, McDonald's, Yum Brands' Taco Bell, Johnson & Johnson and Procter & Gamble now find themselves under the same umbrella.

The new group will have to get antitrust clearance from authorities in around 45 countries.

"We've looked at the antitrust issues very carefully and are not expecting anything that would prevent us from going forward," said Mr Wren.

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