The European Commission (EC) has granted clearance for the proposed takeover of UK advertising and communications group, Tempus, by French agency Havas Advertising (see Havas Moves In On Tempus). The EC said that the takeover “does not raise any competition concerns in the markets for marketing communication services or media buying.”
Havas’ activities include general advertising, direct marketing, media planning and media buying; Tempus achieves the majority of its turnover from media buying services. On an EU level, Havas’ market share will reach only 10% for media buying services. On a national level, Havas’ media buying market share will be between 15% and 25% in three countries – France, Spain and Portugal. Nevertheless, in all these countries, the merged group will still face significant competition from a number of other agencies, reports the Commission.
For marketing communications services, the merged entity will have market shares well below 15% whether the scope of competition is EU-wide or national.
Havas is currently in a bidding battle for Tempus with global advertising and communications network, WPP. Presently, WPP’s 555p per share offer is ahead of Havas’ 541p offer, although Havas is expected to return with a higher bid.
