Fri, 13 Jul 2012 | MERGER
Dentsu, the Japanese advertising agency has finally cracked the global market by making a business purchase.
The firm has put in a £3.16 billion bid for Aegis, which pushed shares in the UK's second largest ad agency up by 45 per cent on Wednesday's closing.
It is thought that the acquisition will mark the start of a significant change for Dentsu, catapulting it into the advertising circle's top levels. The deal comes with unanimous board backing and irrevocable undertakings representing 30.5 per cent of its shares.
The advertising industry has seen a run of major deals recently, including ad giant WPP's £348 million deal for AKQA – a firm Dentsu has previously tried to purchase.
There is some concern that Aegis and Dentsu will have difficulty negotiating client clashes, however an Aegis spokesperson dismissed the worries noting that it is “not a significant issue” and that having some competing clients would be healthy for the business.
The joint income of Dentsu and Aegis will be in the region of £3.8 billion based on 2011 revenues. This is close to that of US firm IPG and will make it one of the largest ad agencies in the world and Asia's biggest marketing agency after the absorption of Aegis' clients, of which 20 per cent are based in Asia.
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