Omnicom, Publicis call off proposed $35b merger

The proposed $ 35 billion merger between US-based Omnicom Group Inc and French rival Publicis Groupe SA has been called off as the challenges in forming the world’s largest advertising agency proved too immense for the partners. The deal, heralded in July as a merger of equals that would vault the two agencies into a more digital age, foundered on issues ranging from its complex tax structure to the firms' divergent cultures. “There was no one factor,” Omnicom Chief Executive John Wren, 61, has said. “There are a lot of complex issues we haven’t resolved. There are strong corporate cultures in both companies that delayed us for reaching an agreement. There was no clear finish line in sight and uncertainty is never a good thing when you are in the personal service business.” The two firms had justified the planned marriage as a way to provide scale and capital to cope with technological forces wrenching the advertising business. Now, with the merger off, the companies have surrendered their potentially dominant position to current leader WPP Plc, according to Reuters.