With CCI nod to Omnicom-IPG deal, all eyes on 'who stays, who goes' in India

New Delhi: The Competition Commission of India (CCI) on Tuesday officially approved Omnicom Group’s $13 billion acquisition of Interpublic Group (IPG), clearing a major regulatory hurdle in what is poised to be the most consequential consolidation in the history of global advertising.

With India joining the ranks of key jurisdictions such as China, Brazil, Saudi Arabia, Colombia, and Egypt in granting antitrust clearance, the path is now clear for the transaction to close in the second half of 2025.

Industry veterans are already bracing for a shake-up unlike any the sector has seen. “This isn’t just another merger. This is an acquisition. IPG will cease to exist. A whole network, gone. When that happens, the cost-saving agenda dominates. That’s a seismic shift,” said a former agency head.

It may be recalled that Omnicom pitched to investors that it would annually save $750 million, not through growth, but by slashing redundancies across leadership, operations, and backend functions.

The implications for India are both immediate and complex.

On the media front, the merger catapults the combined entity to the second-largest position in India, behind only WPP Media.

While IPG Mediabrands currently holds around 20% market share, Omnicom’s existing media presence was not enough to challenge WPP Media’s estimated 40% dominance.

“Even after the merger, WPP will continue to rule the Indian market and there will be no impact on the pecking order—WPP Media, Omnicom (IPG Mediabrands), and Publicis Groupe,” an industry veteran told BestMediaInfo.com.

Omnicom is expected to consolidate its leadership brands – BBDO, DDB, and TBWA – while rationalising overlaps with IPG’s Indian roster: McCann Worldgroup India, FCB Group India, and MullenLowe Lintas.

“The acquirer dictates the future. Omnicom will favour its people and brands,” said an industry observer.

Another senior media agency executive added, “Do we really need six creative brands in India, each with its own CEO and CCO? It’s inefficient.”

“Any Omnicom-IPG agency lacking globally aligned account in India could easily be folded into a stronger agency,” said a former executive familiar with the agency’s structure.

Even agencies like MullenLowe Lintas, which are strong in India, could face downsizing if overlaps become operationally untenable, she added.

The consolidation is already underway.

Omnicom Advertising Group (OAG), led by Aditya Kanthy, currently oversees BBDO, DDB, and TBWA. Industry insiders suggest OAG will absorb IPG’s creative operations as well.

“If you merge four restaurants, you don’t need four head managers. You need one,” quipped a former IPG leader, referring to expected C-suite and support function redundancies.

“Local dominance won’t save IPG brands. The acquirer’s strategy will be implemented across markets,” noted a senior executive, referencing how Dentsu’s acquisition of Aegis eventually gave control to the acquiring network due to better global management alignment.

In India, leadership changes have already begun.

Amardeep Singh now leads IPG Mediabrands India as CEO, with Shashi Sinha elevated to Executive Chairman. Omnicom Media Group is headed by Kartik Sharma. On the creative front, leadership decisions remain less clear, fuelling speculation and unease.

It is to be seen if McCann and FCB leaders would want to work under Aditya Kanthi, added the executive.

“Who will be the big boss? Nobody knows yet. A lot of top people are waiting till October, when the new structure is likely to be announced,” said one senior leader. “Everybody should be paranoid. The most foolish thing you can do now is feel secure. Even being a veteran won’t shield you.”

Behind the scenes, Omnicom has appointed external consultants to assess leadership overlap and streamline structures. 
Aditya Kanthy is reportedly leading the review of IPG’s leadership pipeline in India, raising questions about whether IPG’s senior executives will now report to him.

Client conflict is another emerging challenge. “McCann has Reckitt and L’Oréal and Lowe has Unilever. They are fierce competitors. If you merge these agencies, you’ll have a conflict on your hands,” one executive warned. Omnicom is expected to introduce “red cell” models, firewalled teams or separate business units, to mitigate overlap issues.

While anxiety looms, not all clients are reacting negatively.

According to The Wall Street Journal, major CPG and auto brands are “cautious but constructive.” One Omnicom executive remarked, “Clients want flexibility now but ultimately must defend and grow their brands.”

Within weeks of the news break, independent firms were reportedly reaching out to senior executives with offers of equity and leadership roles.

An industry observer noted, shops like Tilt, Enormous, and Fundamental are already courting senior talent and new clients. “This is a once-in-a-decade talent shake-up. Tilt, Enormous and Fundamental are doing great work and stand to gain,” said one agency leader.

Others are weighing boutique consultancies, especially in high-growth areas like data, AI, and digital transformation.

“Professionals over 40 often struggle to re-enter networks, making the independent sector more viable,” said one consultant.

“Our industry sells time. With AI, the cost of knowledge and delivery will drop significantly. A task that took 10 people four months can now be done by two in six days,” noted a former CXO from IPG.

This shift will likely force agencies to abandon traditional time-based retainers in favour of output- or performance-based models.