Omnicom Reportedly Plans Clemenger Group Buyout

Published: 2025-06-16 03:35:34 ET OMC

Published on 06/16/2025 at 03:35

Australia Global advertising giant Omnicom Group Inc. (NYSE:OMC) is in negotiations to acquire the remaining share of Clemenger Group Limited, as it finalises plans to launch an Oceania management structure across its media and creative advertising groups. Omnicom, which owns 86.84% of the communications business, is in negotiations to acquire the remaining 13.16% stake of Clemenger Group with shareholders to vote on a deal on June 30. The full acquisition of the business, which includes BBDO agencies Clemenger and Colenso BBDO, comes as Omnicom, prepares to launch an Oceania management structure to bring together the Omnicom Media Group and Omnicom Advertising Group businesses.

The move will bring Omnicom in line with rival local holding companies, Publicis Groupe, WPP and Dentsu, all of which operate management teams and shared services at a local holding company level. The Australian understands the favourite to lead the new structure is a former long-term Omnicom staffer Nick Garrett. A communication sent to Clemenger Group shareholders, that was seen by The Australian, stated, "It is important to note that these negotiations are continuing and there is no certainty that these negotiations will result in an agreement or consummated transaction." A general meeting of Clemenger Group shareholders will take place on June 30 to determine whether the proposed deal will receive shareholder approval.

Any deal will be subject to conditions such as regulatory and court approval. The shareholder meeting will take place on the same day that Clemenger Group's long serving chairman Robert Morgan steps down from his role, ending his 46 year career with the business. Omnicom's full acquisition of the Clemenger Group would finish the process that first began in 1972 when BBDO Worldwide purchased a 35% stake in the Clemenger agency.

This stake was increased in 2011 to give the business a 74% stake in the Australian agency group, which started in Melbourne in 1946 as John Clemenger Advertising. The acquisition will provide Omnicom with full ownership of all the creative agencies under the Omnicom Advertising Group structure, which includes TBWA and DDB, the latter of which has recently implemented a number of local management changes. Omnicom Group is also preparing to merge with The Interpublic Group of Companies, Inc. (NYSE:IPG) following the global acquisition of the rival group.

The deal is still subject to regulatory approval in a number of markets, including Australia and New Zealand. The merger of the two businesses will see an overlap in services, specifically media buying, which has raised concerns about potential monopolies in the market. Omnicom owns OMD, PHD and Hearts & Science under Omnicom Media Group, while IPG owns Initiative, UM, Kinesso and IPG MediaBrands.

However, despite the review, industry insiders have suggested that competition concerns in the Australian market are unlikely to be a problem for the deal. The ACCC's preliminary findings are currently scheduled for July 24, while New Zealand's Commerce Commission's review is due next week. The activity comes at a time of significant upheaval within the global advertising industry as the impact of fragmented media, declining budgets and the widespread use of AI technology transforms the market at a rapid pace.