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Omnicom CEO John Wren is comfortable with the $US750 million in synergies targeted with the takeover of competitor IPG.
However, the final number is expected to be more than that.
“We anticipate identifying even more savings once the companies are combined,” he told analysts during a briefing on December quarter results.
“Going forward, we plan to provide regular updates on our progress towards this target.”
Omnicom absorbing IPG will create the world's biggest advertising player with 100,000 people and revenue of $25.6 billion (net revenue of $20 billion).
The deal has been progressing through shareholder approval and regulatory review. A shareholder vote to approve the transaction is set for March 18.
The analysts asked Wren about the reaction so far from clients to the takeover.
“Every client that I've been in contact with and most of my principals who lead other businesses have been very constructive and see the possibilities coming out of the combination of both Omnicom and Interpublic,” Wren said.
“I haven't heard any concerns that we weren't able to address”
Both companies are still operating as two separate entities but are planning and identifying opportunities.
“We'll spend a little bit more time later this month with consultants involved in advising clients in terms of reviewing (pitching) their business.
“We've gotten very favourable feedback from those folks, and we will continue to communicate to everyone on a regular basis as we go through this process.
“We're bullish, and we remain bullish on the transaction. And some of the heavy lifting from a regulatory point of view is really behind us in the last 10 days.”
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