Interpublic Stock Jumps on Report Omnicom in Advanced Talks To Acquire Ad Rival | Global News Avenue

Aipezhi Group Co., Ltd. (IPG) shares surged 14% in premarket trading on a report from Omnicom Group (OMC) is in advanced talks to acquire its rival in an all-stock deal that would create the world’s largest advertising agency.

according to wall street journalThe deal, which could be announced as early as this week, would value Interpublic at between $13 billion and $14 billion, excluding debt. Interpublic shares are down about 10% this year, closing at $29.26 on Friday, valuing the company at nearly $11 billion.

Based on 2023 data, the combined company’s annual net revenue will exceed $25 billion. water treatment plan (WPP) is currently the largest advertising company, with net revenue of approximately $15 billion in 2023.

Omnicom shares, which have gained nearly 20% year to date, fell 5% in premarket trading.

Citi says deal ‘expected to be approved’

Citigroup said in a note on Monday that while investors expect the deal may encounter regulatory hurdles as the combined company controls 48% of the U.S. market, smaller institutions, technology companies and consulting firms are also in the market. Facing fierce competition.

“While regulatory issues will certainly be raised, we believe the deal could easily be approved if attempted,” Citi analysts wrote, noting that “mergers between large agency holding companies are rare.”

Omnicom and Eptech did not immediately return Investment Encyclopedia Request to comment.