Omnicom Group Inc. (OMC) experienced a decline of more than 8% in its stock value on Monday, following the announcement of its upcoming acquisition of The Interpublic Group of Companies, Inc. (IPG) through a stock-for-stock transaction.
As of now, Omnicom's shares are trading down by 8.22%, settling at $94.92 compared to the previous close of $103.42 on the New York Stock Exchange.
The transaction, anticipated to be finalized in the latter half of 2025, stipulates that Interpublic shareholders will receive 0.344 shares of Omnicom for every Interpublic common share they hold.
Upon completion of the deal, Omnicom shareholders will possess 60.6% ownership of the merged entity, while Interpublic shareholders will hold 39.4%, based on a fully diluted basis.
It is projected that this merger will yield annual cost synergies of $750 million and will enhance the adjusted earnings per share for the stakeholders of both Omnicom and Interpublic.
