Grey Global Merger Delayed By EC Information Request

WPP’s proposed merger with Grey Global looks set to be delayed following a European Commission request for further information prior to its approval of the deal.

The request for additional details of the merger comes under the EC’s competition protection legislation, meaning that the merger review procedure will now be delayed until the EC has received the new information.

WPP notified the EC of its proposed acquisition of Grey in October, following the completion of an £845 million deal for purchase to bring the advertising giant neck and neck with US-owned Omnicom for the title of the world’s largest advertising agency (see WPP Wins Battle For Grey With £845 Million Bid).

The purchase of New York-based Grey also brings with it the account of world’s largest advertiser Procter & Gamble, as well as drinks group Diageo and the pharmaceuticals giant GlaxoSmithKline. Grey had been the only major advertising agency not to be owned by another group.

However, the deal could still be in jeopardy, with the EC able to reject the two companies’ merger proposals. However, WPP remains confident that a rejection will not be tabled and is continuing to draw up plans for Grey, including the cut back of almost 7% of the company’s staff in a bid to reduce costs and boost profits.

WPP: 020 7408 2204 www.wpp.com

Recent Stories from NewsLine WAP Still Popular As Autumn Rears Its Head Associated New Media Creates Dedicated Research Arm UK Broadband Usage To Double In Six Months

Subscribers can access ten years of media news and analysis in the Archive