New York: A merger of Omnicom Group Inc, the No. 1 US advertising company, and French rival Publicis Groupe SA has hit a roadblock following disagreements over terms of the deal, the Wall Street Journal reported.
Last July, both companies announced the proposed $35bn merger that would overtake WPP Plc as the world’s largest advertising company. The companies have essentially not agreed on who will be the legal acquirer, which is delaying crucial paperwork with the US Securities and Exchange Commission.
Despite both companies owning 50 percent of the new entity, technically one has to acquire the other for accounting reasons. Omnicom and Publicis have stopped meetings of about 70 integration committees, where they present their networks, teams, organisation, the report said.Reuters
