Omnicom Group and Interpublic Group (IPG) shareholders have voted to approve the combination of the two rival holding companies.
The stockholders voted on Omnicom’s proposed takeover of IPG during a meeting held today (March 18). Shareholder approval marks a significant milestone in the process of combining the two companies, which would create the world’s largest advertising network by revenues, overtaking rivals Publicis Groupe and WPP.
The companies still expect the takeover, first announced in December 2024, to close in the second half of 2025. The transaction must still go through regulatory approvals.
As the companies previously announced, upon completion of the deal, Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4%, on a fully diluted basis.
“We are very pleased to reach this important milestone. The strong support of our stockholders confirms the compelling value proposition of the transaction and the leading-edge services, products and platforms it will create for our people and clients,” John Wren, chairman and chief executive (CEO) of Omnicom, said in a statement.
“With an overwhelming majority voting in favor of the transaction, it is clear that our stockholders see the immense opportunity of Interpublic joining forces with Omnicom,” added Philippe Krakowsky, CEO of IPG. “Their approval reflects the tremendous potential we have to create one of the most dynamic, client-focused, and forward-leaning organizations in our industry that will deliver significant shareholder value for years to come.”
FTC scrutiny
Last week, Omnicom and IPG revealed that the U.S. Federal Trade Commission (FTC) requested additional information and documents about the deal.
While Omnicom said in a corporate blog post that the request formed “a standard part of the regulatory process,” the FTC’s second request for information could be a sign the government agency is reviewing whether the transaction could be anti-competitive under U.S. law. If it is deemed so, regulators could delay the deal or ultimately file a lawsuit blocking it.
Per the FTC’s own data, three-quarters of proposed mergers subject to a second request under its pre-merger review process are either abandoned or voluntarily restructured.
In February, Wren and Krakowsky hosted a closed-door meeting in New York with agency search consultants to discuss how the deal would benefit clients.
