French advertising network, Publicis Group, has this morning announced that it intends to merge with privately-owned US agency BCom3. The $3.0 billion deal will create the world’s fourth largest advertising agency network.
BCom3 is the world’s seventh largest agency, with operations primarily in the US. It owns the Leo Burnett and d’Arcy creative agencies and Starcom Mediavest, which is the fourth largest media buying network.
Japanese agency Dentsu owns 20% of BCom3 and it is understood that it wants to retain a stake in the combined Publicis/BCom3 group – perhaps around 10-15% according to a report in the Wall Street Journal.
Publicis’ shares were suspended ahead of an analysts presentation in Paris this morning, where the deal was confirmed. Publicis is currently the world’s sixth largest agency and owns the Saatchi & Saatchi group. The group yesterday posted a strong set of financial results (see Publicis Bucks The Trend With 18% Rise In Profits).
More details to follow shortly.
