The Competition Commission of India (CCI) has approved the proposed acquisition of The Interpublic Group of Companies, Inc. by Omnicom Group Inc. Both are US-based advertising and marketing firms.

According to an official statement from CCI yesterday, the proposed combination relates to the acquisition of sole control of The Interpublic Group of Companies, Inc. (IPG) by Omnicom Group Inc. (Omnicom) and under the agreement, EXT Subsidiary Inc. (Omnicom Merger Sub,a wholly owned subsidiary of Omnicom) will be merged with and into IPG. Omnicom Merger Sub will cease to exist and IPG will remain the surviving entity as a wholly owned subsidiary of Omnicom, which is the proposed combination.

Both the companies had approached India’s anti-trust body earlier this year seeking a clearance as part of green signals from various such governmental bodies in different countries.

Omnicom is a New York based provider of marketing and sales solutions. Omnicom comprises an inter-connected global network of marketing and communications companies offering a diverse, comprehensive range of marketing solutions spanning brand advertising, customer relationship management, media planning and buying services, public relations and numerous specialty communications services.

The CCI statement said that a detailed set of observations will be issued soon.

On December 9, 2024, Reuters had reported that Omnicom Group  had struck a $13.25 billion all-stock deal to buy rival Interpublic Group, creating the world’s largest advertising agency as traditional players look to better compete with Big Tech firms amid accelerating use of AI.

Interpublic investors are to receive 0.344 Omnicom shares for each share held, or $35.58 based on Omnicom’s last close.

“We are pretty confident this is not going to create any regulatory issues. The world isn’t divided into four companies — you have things like Google, Facebook, Amazon… servicing people’s marketing needs,” Omnicom CEO John Wren had then said on a call with analysts.

Regulatory roadblocks had forced Omnicom and France’s Publicis Groupe SA to call off their $35 billion merger in 2013.

Omnicom owns brands such as BBDO and TBWA, while Interpublic owns McCann, Weber Shandwick and Mediabrands. Both companies are based in New York. The combined company would have revenue of more than $25 billion, based on 2023 figures.