UK Regulator launches probe into $13.25 billion Omnicom-IPG merger

New Delhi: The UK’s Competition and Markets Authority (CMA) has initiated a formal Phase 1 investigation into the proposed $13.25 billion merger between advertising giants Omnicom Group and The Interpublic Group of Companies (IPG), announced on December 8, 2024. 

The probe, launched on June 16, 2025, aims to assess whether the all-stock deal could lead to a “substantial lessening of competition” in the UK’s advertising, media buying, and marketing services markets, according to a CMA statement mentioned in global news reports.

The merger, which would create the world’s largest advertising agency with combined revenues exceeding $25 billion, follows Omnicom’s acquisition of IPG to strengthen its position against Big Tech competitors like Google and Amazon, and to counter the growing influence of AI in advertising. Omnicom’s brands, including BBDO, TBWA, and OMD, would join IPG’s portfolio, featuring McCann, Weber Shandwick, and IPG Mediabrands, potentially reshaping the global advertising landscape.

The CMA’s inquiry follows an initial call for comments from May 7 to May 21, 2025, seeking stakeholder input on the deal’s competitive impact. The regulator is now examining whether the merger constitutes a “relevant merger situation” under the Enterprise Act 2002, focusing on potential market dominance in media buying, creative services, and data-driven marketing. A Phase 1 decision is due by August 13, 2025, which will determine if a deeper Phase 2 investigation is needed.

The deal has already cleared regulatory hurdles in six of 18 required jurisdictions, including China, India and Brazil, but faces scrutiny in the UK, US, and Australia, where the Australian Competition & Consumer Commission has set a review deadline of July 24, 2025. In the US, the Federal Trade Commission has requested additional information ahead of a shareholder vote.

The merger, expected to close in the second half of 2025 pending approvals, promises $750 million in annual cost synergies and aims to bolster capabilities in AI and data-driven marketing.