Merger and Acquisition

MERGER AND ACQUISITION

Merger and acquisition are two commonly used way by the corporation to pursue strategies. A merger occurs when two organizations unite to form one enterprise. An acquisition occurs when a large organization purchases or acquired a smaller firm, or vice versa. When a merger or acquisition is not desired by both parties, it can be called a takeover. As for the case of the proposed mega-merger between global ad agencies Publicis and Omnicom is recognised as a friendly merger proposal. As both companies said that this would give them the necessary scale and investment firepower to cope with rapid changes wrought by technology on the advertising business. This shows that both companies are looking forward on continuing the plan on mega-merger.

The issue raised in this article is that the proposed mega-merger of these two companies would likely to create some instability as rival ad agencies try to poach clients while Publicis and Omnicom are distracted by the merger. However, the CEOs of the two companies pledged that they could handle concerns from major clients who may find the marriage too close for comfort, as well as address questions from regulators who are concerned about maintaining a competitive landscape.

Besides that, this proposed mega-merger would also have to get antitrust clearance from authorities in around 45 countries, as said by the Omnicom CEO John Wren that they will looked over at the antitrust issues very carefully so that there will be nothing preventing them from going forward. However, there are saying that it is unlikely for the companies would have progress if they have doubts on getting approval. There is also prediction that the clients of both advertising companies would object to the deal and that media companies that depend on advertising to survive would complain to antitrust authorities. So, for them to face this problem, they might have to sell small brands in some other countries.

This case can be...