Publicis-Omnicom: Major Conflicts, Before and After the Merger
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In a curiously, somewhat combatively titled press release (“Precision”), Publicis Groupe last week tried to assure the world that all remains well with its $35 billion merger with Omnicom Group. It laid out the technical challenges obstructing the deal’s closure (Netherlands is the legal domicile; French tax authorities need to issue a ruling; the merged company’s main residence for tax purposes will be the U.K.; and China still hasn’t given an antitrust blessing). Publicis said the French process was “standard,” it was “confident” about the U.K. and there was “no indication” that Chinese approval was not forthcoming in “a reasonable time period.”
It was all very, well, precise.
Indeed, some of the delays, like the wait for a key filing with the Securities and Exchange Commission, don’t necessarily spell doom. “Nine months is not out of the ordinary,” said Donna Hitscherich, senior lecturer at Columbia Business School. “It takes time to get stuff together.”
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