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Competitor questions Publicis-Ominicom merger


Businesses are constantly trying to move on to bigger and better things. They may try to bring new products to clients or customers, they may try a new way of operating or they may want to increase their business or its customer base. Many do this by either buying into businesses or allowing their business to be purchased.

But these moves are not without risk: Business disputes can arise from transactions like this; there are many things to think about when mergers are on the table.

In France, two major players in the advertising business are considering a merger that would give them an annual sales figure of approximately $23 billion. These two companies, Publicis and Omnicom, are currently the second and third largest ad companies in the world.

Their goal is to take over the number one company-WPP. However, not everyone is on board with this potential combination. A top executive at Havas, another agency in France, feels this might hurt their customer base or their employees. He raises a point that clients are looking for speed and agility, not size and complexity.

Although this complex business transaction is a large one that may turn out well for all companies involved, the importance of what's best for the customer and staff is a great point. Sometimes large companies only see the bottom dollar.

But is it also good for competition? Will this large acquisition create a monopoly and try to push out its competitors? It might be best to seek an attorney with experience in the business world to help navigate this terrain. They can determine if the merger will cause a dispute or if it can be a great move for all involved.

Source: Reuters, "Havas CEO questions Publicis-Omnicom merger rationale," July 28, 2013

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