WPP Extends Grey Merger Deal By Two Months

Global advertising giants WPP and Grey Global have agreed to extend the amount of time given to complete their impending merger by two months, following a request for additional information made by the European Commission.

The two companies will now be able to wait for the EC ruling on their merger, worth £675 million, following an investigation under competition protection legislation.

WPP notified the EC of its proposed acquisition of Grey in October, following the completion of a 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).

However, the deal could still be in jeopardy, with the EC able to reject the two companies’ merger proposals on the receipt of additional information on the deal.

Despite the doubt surrounding the deal, 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 (see WPP Planning To Cut 7% Of Jobs At Grey).

WPP: 020 7408 2204 www.wpp.com

Ofcom: 020 7981 3040 www.ofcom.org.uk

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