Washington, Dec 9 (AP) Omnicom is buying Interpublic Group in a stock-for-stock deal that will create an advertising powerhouse with combined annual revenue of almost USD 26 billion.
Shareholders of The Interpublic Group of Companies Inc. will receive 0.344 Omnicom shares for each share of Interpublic common stock that they own. Omnicom shareholders will own 60.6 per cent of the combined company and Interpublic shareholders will own 39.4 per cent after the transaction is complete.
The combined company will keep the Omnicom name and trade under the “OMC” ticker symbol on the New York Stock Exchange.
The deal is expected to have annual cost savings of USD 750 million.
The transaction is targeted to close during the second half of next year. It still needs the approval of Omnicom and Interpublic shareholders.
Shares of Interpublic jumped more than 15 per cent before the market open on Monday, while Omnicom's stock fell more than 2 per cent. (AP)
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