Omnicom Group Inc. and Publicis Groupe SA terminate proposed $35 billion merger

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Screen Shot 2014-05-09 at 9.36.06 am.jpgOmnicom Group Inc. and Publicis Groupe SA have announced the termination of their $35 billion merger in view of difficulties in completing the transaction within a reasonable time frame.

The deal billed as a “merger of equals” had been challenged by battles over position and power, including difficulties in getting tax and other regulatory approvals, as well as differences over which company would be listed as the technical acquirer of the other, people familiar with the matter have said.

The advertising giants sent out a press release saying: “The parties have released each other from all obligations with respect to the proposed transaction, and no termination fees will be payable by either party.”

In a join statement Maurice Levy, chairman and CEO of Publicis Group and John Wren, president and CEO of Omnicom Group stated: “The challenges that still remained to be overcome, in addition to the slow pace of progress, created a level of uncertainty detrimented to the interests of both groups and their employees, clients and shareholders. We have thus jointly decided t proceed along our independent paths. We, of course, remain competitors, but maintain a great respect for one another.”